Drawing The Correct Upward Trend Line Traders Most Important Skill
How to Draw XAUUSD Upwards Trendlines on XAUUSD Charts
An upwards gold trend line is drawn below the gold trend pattern by connecting at least two xauusd price lows. This upwards gold trend line will draw a trendline which explains the general direction of the market.
The example illustrated and explained below shows how xauusd price moves when it is moving in a bullish upward gold trend market. The xauusd price will move upwards forming support areas.
Since the xauusd price moves in a zigzag manner gold traders normally draw a gold trendline which shows the general upward gold trend direction of the market.
A gold upward trend occurs when the fore xauusd price will continue making 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.
Gold Uptrendlines gain more validity each time xauusd price touches this upward trend line but does not penetrate it. A upwards trend remains in place until this sequence of higher highs & higher lows is broken.
A down-side penetration of an upward gold trendline is a technical sell signal, and usually the first indication that an upward gold trend may soon end.
Drawing The Correct Gold Trendline Learn XAUUSD Traders Important Skills
When the gold market moves upwards it forms higher highs & higher lows forming a bullish gold trend movement - Gold Upwards Trend. An upwards gold trendline can then be plotted by connecting these higher lows.
To draw this upward trend line we use support levels. To plot the upward trend line correctly two support levels are needed. When xauusd price touches the upwards trendline we open buy gold trade and place stop loss orders just a few pips below the upwards trend line. Gold examples illustrated and described below shows an example of an upwards gold trend line.
Drawing The Correct Upwards Trendline Traders Most Important Skill - Day Trend Lines Gold Strategy - Drawing Gold Trend Indicator MT4
The upwards gold trend line strategy will show the general gold trend direction of the market as upwards - therefore gold traders will only open buy xauusd trades as long as price is moving within this upwards trend set-up within the support levels. These xauusd price support areas are the areas where if the xauusd price retraces then these levels will provide strong supports for the xauusd price. This is why many gold buyers will wait until xauusd price retraces downward & hits these trendline retracements levels so as to open buy xauusd trades. Gold trades opened at this support levels have a high Risk to Reward Ratio with minimum gold draw down -price retracement.
In the above gold upward trend line gold trading strategy a trader would have opened buy xauusd trades from the gold signals generated at the support 1, support 2, support 3 & these xauusd trades would have made profits with minimum amount of gold draw down -price retracement.
Drawing The Correct Downward Trend Line Traders Most Important Skill
How to Draw Gold Downward Trendlines on Gold Charts
A downward gold trendline is drawn above the downward trend pattern formed by consecutive lower price highs, the downwards trendline must connect at least two xauusd price highs, with the most recent xauusd price high being lower. For our xauusd trading downwards trendline examples we shall use the MetaTrader 4 gold technical analysis charts to illustrate an example of downward xauusd trend.
Since xauusd price moves downward in a zigzag manner gold traders normally draw a gold downward trendline which shows the general downward gold trend direction of the xauusd prices. In gold technical analysis this general xauusd price direction is referred to as the Gold TREND by traders. In gold technical analysis definition we can define gold downward trendline is plotted on a xauusd chart showing the resistance areas bearish xauusd market trend trading direction.
Drawing The Correct Downward Trend Line Traders Most Important Skill - Day Trend Lines Strategy
A gold downward trend occurs when the price forms series of lower highs and lower lows. Each xauusd price high is lower than the previous price high - lower high, & each xauusd price low is lower than the previous low - lower low therefore showing bearish xauusd price movement - downward xauusd trend.
Gold Downward trend lines gain more validity each time xauusd price touches the downward gold trend line but does not penetrate the trend line. A downward trend remains the general gold trend direction until this series of xauusd price lower highs & xauusd price lower lows is broken.
In gold technical analysis, An upside penetration of a gold downwards trend line is a technical buy signal, & is usually the first signal that the bearish xauusd price trend may soon reverse.
Drawing a Downward XAUUSD Trend Line
When it comes to learning how to draw gold trend lines correctly - you need to know that when the gold trend is bearish xauusd price forms lower price lows & lower price highs forming a general downwards gold market trend direction. These are the points that are used to plot the downwards gold trend line.
To draw this downwards trend line we use resistance zones & to draw a downwards gold trend line correctly two resistance levels are needed. When xauusd price touches this gold trend line, then we open sell xauusd trades & place stop loss orders just a few pips above the sloping resistances:
Day Trendlines Strategy
When gold trading with this gold trend line gold trading strategy, this gold trend line strategy will show the general gold trend direction of the market as downwards therefore gold traders will only open sell xauusd trades. These gold trend line levels are the levels where if xauusd price retraces then these areas will provide strong resistance. This is why many gold sellers will wait until xauusd price retraces upward & hits these trend line retracements levels to open sell xauusd trades. Gold trades opened sell xauusd trades at these levels have a high Risk-:-Reward Ratio with minimum draw down.
For Example, in the above gold example, a trader would have opened sell xauusd trades at the resistance 1, resistance 2, resistance 3 and these sell xauusd trades would have made profits with minimum amount of gold draw down -price retracement.
Drawing The Correct XAUUSD Trendline Learn Gold Traders Important Skills
The Gold Drawing Gold Trend Line Indicator MetaTrader 4 gold tools to draw these trend lines in MT4 platform are located on the MetaTrader 4 drawing tool bar within the MetaTrader 4 platform, To access this MetaTrader 4 toolbar if it is not displayed on your MT4 platform, Click in "View" Next to the "File" menu at top left corner of MT4 platform and click View, Then Click on Toolbars, Then Check the "Lines Toolbar" by clicking on it.
Below is the screen-shot Image of the MetaTrader 4 drawing toolbar. To draw a gold trendline on a gold chart click on this MetaTrader 4 gold trend line plotting tool & select the points where you want to draw the trend line in MetaTrader 4 xauusd chart.
Drawing The Correct Trend Line Traders Most Important Skill - Drawing Gold Trend Indicator MT4
This gold trend line strategy is one of the popular gold technical indicators used by traders to analyze the xauusd price trend trading direction.
Drawing The Correct Gold Trend Line Traders Most Important Skill - Day Trading Gold Trend Lines Strategy - Drawing Gold Trendline Indicator MT4 - Drawing Trend Line XAUUSD Indicator MT4
