MetaTrader 4 Tools for Drawing Gold Trendlines and Gold Channels

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

The diagram below shows how xauusd trading price moves when it is moving in a bullish market. The xauusd price will move upward forming support regions.

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

A up gold trend occurs when the fore xauusd 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.

Gold Up trend lines gain more validity each time xauusd trading price touches this upwards 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 gold trendline is a technical sell signal, and usually the first indication that an upward gold trend may soon end.

Upward Gold Trend Line MT4 Gold Trend Line Indicator

When the xauusd market moves upwards it forms higher highs & higher lows forming a bullish market movement - Upward Gold Trend. An upward gold trendline can then be plotted 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 xauusd trading price touches the upwards trend line we buy and place stop loss orders just a few pips below the upwards trend line. Diagram below shows an example of an upward gold trend line.

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

In the above upward gold trend line xauusd trading setup the trader would have opened buy/long xauusd trades from the signals generated at the support1, support2, support3 and these xauusd trades would have made a lot of profits with minimum amount of draw-down/retracement.

Upward XAUUSD Channel MT4 Channel Indicator

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

How to Trade Upward XAUUSD Channel

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

MT4 Tools for Drawing XAUUSD Trend Lines & Channels

The MT4 Gold Trend Line Indicator drawing tools to draw these trend lines & gold channels setups on the MetaTrader 4 are located on the MT4 drawing tool bar within the MT4 platform, To access this MetaTrader 4 tool bar if it is not activated on your gold trading platform, Click in "View" Next to "File" on the top left corner of MetaTrader 4 platform and click View, Then Click on Toolbars, Then Check the "Lines Tool Bar" 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 trendline plotting tool and select the point where you want to plot the trend line.

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