Upward XAUUSD Trend-Lines & Channels
An upwards xauusd trend line is drawn below the xauusd trend pattern by connecting at least two lows. This upward xauusd trend line will draw a line that show the general direction of the market.
The diagram below shows how gold trading price moves when it is moving in a bullish market. The gold trading price will move upward forming support regions.
Since the xauusd market moves in a zigzag manner xauusd traders normally draw a xauusd trend-line which shows the general upwards direction of the market.
A xauusd up trend occurs when the fore gold price will continue to make consecutive higher highs and higher lows. Each price high is higher than the previous high - higher high , and each low is higher than the previous low - higher low.
XAUUSD Trading Up xauusd trend lines gain more validity each time gold trading price touches this upward trend line but does not penetrate it. A up trend remains in place until this series of higher highs and higher lows is broken.
A downside penetration of an upwards xauusd trendline is a technical sell signal, and usually the first indication that an upwards xauusd trend may soon end.
Upward XAUUSD Trend Line MetaTrader 4 XAUUSD Trend Line Indicator
When the xauusd market moves up it forms higher highs & higher lows forming a bullish market movement - Upward XAUUSD Trend. An upward xauusd trend line can then be drawn by connecting these higher lows.
To draw this upwards trend line setup we use supports. To draw the upward trend line correctly two support levels are needed. When gold trading price touches the upwards trend line we buy and place stop loss orders just a few pips below the upward trend line. Diagram below shows an example of an upward xauusd trend line.
The xauusd upward trend line setup will show the general direction of the market as bullish therefore xauusd traders will only open buy long gold trades as long as trading price is within this upward trend bullish market setup and within the support levels. These support levels are the levels where if the xauusd market retraces then these points will provide strong supports for the gold trading price. This is why many xauusd buyers will wait until gold trading price retraces downwards and hits these retracements levels market the upward trend line to open buy gold trades. XAUUSD trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.
In the above upward xauusd trend line xauusd setup the trader would have opened buy/long gold trades from the signals generated at the support1, support2, support3 and these gold trades would have made a lot of trading profits with minimum amount of draw-down/retracement.
Upward XAUUSD Channel
An upwards xauusd channel is plotted by drawing a line that is parallel to the upward trend-line & then adjusted to touch the tops boundary of the gold trading price movement. This then forms an upwards xauusd channel & as long as a price stays between these 2 trading channels the bullish market movement will continue heading upwards.
How to Trade Upward XAUUSD Channel
This upwards xauusd channel is used by traders to show levels where it is best to take profits. Traders will take some profit once the gold trading price touches the upper channel & wait for another retracement before opening a long buy gold trading again.
MetaTrader 4 Tools for Drawing XAUUSD Trend Lines & Channels
The XAUUSD Trading MT4 Trend Line Indicator drawing tools to draw these trend lines & xauusd channels setups on the MT4 are located on the MetaTrader 4 drawing tool bar within the MetaTrader 4 platform, To get this MT4 tool bar if it is not activated on your xauusd platform, Click in 'View' Next to the 'File' menu at top left corner of MetaTrader 4 platform and click View, Then Click on Tool Bars, Then Check the 'Lines Toolbar' by clicking on it.
Below is the screenshot Image of the MT4 drawing tool bar. To draw a xauusd trend-line on a xauusd chart click on this MetaTrader 4 xauusd trend-line plotting tool and select the point where you want to plot the trend line.
This is one of the learn xauusd technical analysis lesson among the many learn xauusd tutorials on this website located on the side navigation menu, where you will learn how to draw xauusd trend lines & analyze these trend lines setups.
