Upward Trend Lines and Channels - MT4 Tools for Drawing Trendlines and Channels

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

The forex trading example below shows how forex price moves when it is moving in a bullish market. The forex price will move upward forming support zones.

Since the forex market moves in a zigzag manner forex traders normally draw a forex trendline which shows the general upward direction of the market.

A forex uptrend occurs when the fore price makes consecutive higher highs and higher lows. Each price high is going to be higher than the previous high - higher high , and each low is higher than the previous low - higher low.

Forex Uptrendlines gain more validity each time price touches this upwards trend line but does not penetrate it. A forex uptrend remains in place until this series of higher highs and higher lows is broken.

A down-side penetration of an upward forex trendline is a technical sell signal, and usually the first indication that an upward forex trend may soon end.

Drawing an Upward Forex Trend Line - Upward Forex Trendline MT4 Trendline Indicator

When the forex market moves upwards it forms higher highs & higher lows forming a bullish market movement - Upward Forex Trend. An upward forex trend line can then be plotted by connecting these higher lows.

To draw this upward trend line setup we use supports. To draw the upwards trend line correctly 2 support zones are needed. When forex price touches the upward trend line we buy and place stop loss orders just a few pips below the upwards trend line. The forex trading example below shows an example of an upward forex trend line.

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

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

Upward Forex Channel - Upward Forex Channel MT4 Channel Indicator

An upward forex trading channel is plotted by plotting a line that is parallel to the upward trend line & then adjusted to touch the top boundary of the forex price movement. This then forms an upwards forex channel and as long as the trading price stays between these 2 market trend channels the bullish market movement will continue to move upward.

Trading The Forex Channel - How to Trade Upward Forex Channel

This upward forex 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 and wait for another retracement before opening a long buy trade again.

MT4 Tools For Drawing Trend Lines and Channels

The Forex MT4 Trendline Indicator drawing tools to draw these trend lines and forex 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 trading platform, Click in 'View' Next to 'File' on the top left corner of MT4 forex platform and click View, Then Click on Toolbars, Then Check the 'Lines Toolbar' by clicking on it.

Shown Below is the screenshot Image of the MT4 drawing tool-bar. To draw a forex trendline on a forex chart click this MT4 trendline drawing tool and select the point where you want to draw the trend line.

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