Meta Trader 4 Tools for Drawing Trend Lines & Indices Channels

An upwards stock trend line is drawn below the stock trend pattern by connecting at least 2 lows. This upward stock trend line will draw a line that show the general direction of the market.

The diagram below shows how price moves when it is moving in a bullish market. The price will move upwards forming support areas.

Since the stock market moves in a zigzag manner stock traders normally draw a stock trend line which highlights the general upward direction of the market.

A up trend occurs when the fore price will continue to form 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.

Stock Indices Trading Up trendlines gain more validity each time price touches this upward trend line but does not penetrate it. A up trend remains in place until this sequence of higher highs and higher lows is broken.

A down-side penetration of an upwards stock trend line is a technical sell signal, & usually the first indication that an upward stock trend may soon end.

Upward Trend Line MT4 Trend Line Indicator

When the stock market moves up it forms higher highs & higher lows forming a bullish market movement - Up-ward Trend. An upward stock trend line can then be drawn by connecting these higher lows.

To draw this upward trend line setup we use supports. To draw the upwards trend line correctly 2 support levels are needed. When price touches the upward 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 stock trend line.

The stock upward trend line setup will show the general direction of the market as bullish therefore stock traders will only open buy long stock trades as long as price is within this upward trend bullish market setup and within the support areas. These support levels are the levels where if the stock market retraces then these points will provide strong supports for the price. This is why many stock indices buyers will wait until price retraces downwards & hits these retracements levels market the upward trend line to open buy stock trades. trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above upwards stock trend line stock indices setup the trader would have opened buy/long stock trades from the signals generated at the support1, support2, support3 and these stock trades would have made a lot of profits with minimum amount of drawdown/retracement.

Upward Stock Indices Channel MT4 Channel Indicator

An upwards stock indices channel is plotted by plotting a line that is parallel to the upward trendline & then adjusted to touch the top boundary of the price movement. This then forms an upwards stock indices channel & as long as a price stays between these 2 channels the bullish upward market movement will continue moving up.

How to Trade Upward Stock Indices Channel

This upwards stock indices channel is used by traders to show levels where it is best to take profits. Traders will take some profit once the price touches the upper channel & wait for another retracement before opening a long buy stock index trading again.

Trend Lines MT4 Trend Line Indicator

The Stock Indices MT4 Trend-Line Indicator drawing tools to draw these trend lines & stock indices channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 platform, To access this MT4 tool bar if it is not activated on your stock platform, Click in 'View' Next to 'File' menu at the tops left corner of MetaTrader 4 platform and click View, Then Click on Tool Bars, Then Check the 'Lines Tool Bar' by clicking on it.

Below is the screenshot Image of the MetaTrader 4 drawing tool bar. To draw a stock trendline on a stock chart just click on this MetaTrader 4 trend line drawing tool and select the point where you want to draw the trend line.

This is one of the learn stock indices analysis lesson among the many learn stock indices tutorials on this website located on the side navigation menu, where you will learn how to draw stock trend lines & analyze these trend lines setups.