# How To Use Indices Trend Line Signals For Entry Trading Signals, Exit Trading Signals and Setting Stop Loss Indices Trading Order Levels

## Indices Trend Indicator MetaTrader 4

**How to Use Indices Trend Lines to Set Entry, Exit and Setting Stop Loss Indices Trading Orders: **

Indices Trend line trading method can be used to determine good entry and exit points for trades, protective stops are placed just below them.

The indices trend line bounce technical analysis strategy is a low-risk entry method used by stock indexes traders to place entry trades after stock indexes price has retraced.

Trades are setup along these indices trend line bounce levels and a stop losses placed just above the downward indices trend line for a downward indices trend or below the upward indices trend line in an upward indices trend.

The indices trend line break is a crucial indices trend reversal indicator of possible Indices Trading reversal trading signal. When the indices trend line is broken the stock indexes price starts move in the opposite direction. This provides an early exit stock indices signal for traders to exit their open trades and take profits.

When there a penetration of these indices trend line levels, it is a signal that the stock indexes price can start moving in the opposite direction.

Unlike other technical analysis indicators there is no formula used to calculate a indices trend line, this formation is just drawn between two chart points on a stock indexes trading chart.

### Technical Analysis Methods of Indices Trend Lines

**The indices trend line bounce** is a continuation stock indices signal where stock indexes price bounces off this line to continue moving in the same direction as that of the indices trend. In a downward indices trend, the stock indexes trading market will bounce downwards after hitting this indices trend line bounce level which is the resistance level. In an upward indices trend, the stock indexes trading market will bounce upwards after hitting this indices trend line bounce level which is the support level.

**The indices trend line break** is a reversal stock indices signal where the stock indexes trading market goes through the indices trend line and starts moving in the opposite direction. When a up indices trend is broken then the sentiment of the stock indexes trading market reverses and becomes bearish and when a down indices trend is broken then the sentiment reverses and becomes bullish.

For very strong indices trends, after this indices trend line break signal, the stock indexes price will consolidate for some time before moving in the opposite direction. For short term indices trends then this indices trend line break signal will mean stock indexes price may reverse immediately.

In indices trading, both the indices trend line bounce and the indices trend line break that are used in technical analysis of stock indexes trading charts are based upon these indices trend line levels being support and resistance levels.