MetaTrader 4 Tools for Drawing Indices Trend Lines & Indices Channels

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

The diagram below shows how stock index price moves when it is moving in a bullish market. The stock index price will move upward forming support levels.

Since the stock indices market moves in a zigzag manner stock indices traders normally draw a stock indices trendline which shows the general upwards direction of the market.

A stock indices up trend occurs when the fore stock index 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 stock index trendlines gain more validity each time stock index 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 upward stock indices trendline is a technical sell signal, & usually the first indication that an upward stock indices trend may soon end.

Upward Stock Indices Trend Line MT4 Stock Indices Trend Line Indicator

When the stock indices market moves up it forms higher highs & higher lows forming a bullish market movement - Upward Stock Indices Trend. An upward stock indices trend line can then be plotted by connecting these higher lows.

To draw this upwards trend line setup we use supports. To draw the upward trendline correctly two support zones are needed. When stock index 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 stock indices trend line.

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

In the above upward stock indices trend line stock indices setup the trader would have opened buy/long stock index trades from the signals generated at the support1, support2, support3 and these stock index 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 stock index price movement. This then forms an upward 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 stock index price touches the upper channel & wait for another retracement before opening a long buy stock index trading again.

Stock Indices Trend Lines MT4 Stock Indices 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 indices 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 MT4 drawing tool bar. To draw a stock indices trendline on a stock indices chart just click on this MT4 stock indices trendline drawing tool and select the point where you want to draw the trend line.

This is one of the learn stock indices technical 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 indices trend lines & analyze these trend lines setups.