Downwards Silver Trendlines & Channels
Downward XAGUSD Trend Line MT4 XAGUSD Trend Line Indicator
A downwards silver trendline is plotted above the downwards silver trend pattern formed by consecutive lower highs, the downward silver trendline must connect at least 2 highs, with the most recent high being lower. For our downward silver trend examples we shall use the MT4 technical analysis software silver charts to illustrate example of downward silver trend.
Since xagusd price moves down in a zigzag manner silver traders normally draw a downward silver trendline which shows the general downward direction of the xagusd prices. In silver market technical analysis, this general xagusd price direction is referred to as the TREND by xagusd traders. In silver technical analysis definition we can define this silver trading down silver trendline is plotted on a Silver chart showing the resistance areas (bearish market direction).
A silver trading down silver trend occurs when the xagusd price forms series of lower highs and lower lows. Each price high is going to be lower than the previous high - lower high, and each low is lower than the previous low - lower low therefore showing bearish xagusd price movement.
Silver Down silver trend-lines gain more validity each time xagusd price touches the downwards silver trend line but does not penetrate the silver trend line. A silver trading down silver trend remains the general direction until this series of lower highs and lower lows is broken.
In silver technical analysis, An up side penetration of a silver trading down silver trend line is a technical buy silver trading signal, and usually the first indication that the bearish direction of xagusd prices may soon reverse.
Downward XAGUSD Trend Line MT4 XAGUSD Trend Lines Indicator
When it comes to learning how to draw & learning silver technical analysis of silver charts, you need to know that when the xagusd trading market is bearish it forms lower lows and lower highs forming a downwards general market direction. These are the points that are used to draw the downward silver trend line.
To draw this downward silver trend setup we use resistances and to do it correctly two resistances are needed. When xagusd price touches this silver trend line, then we sell and place stop loss just a few pips above the sloping resistances:
Trading This Downward XAGUSD Trend Market Move
When trading with this silver trend line trading method, this silver trend line setup will show the general direction of the market as downward therefore silver traders will only open short sell xagusd trades. These are the levels where if xagusd price retraces then these points will provide strong resistance. This is why many short sellers will wait until xagusd price retraces upwards & hits these retracements levels to open sell xagusd trades. Silver trades opened at these levels have a high Risk to Reward Ratio with minimum draw down.
For Example, in the above silver trading example, a trader would have opened short sell silver trading signals at the resistance1, resistance2, resistance3 and these sell xagusd trades would have made a lot of profits with minimum amount of draw-down/retracement.
Downward XAGUSD Channel MT4 Channel Indicator
A silver downward channel is plotted by plotting a line that's parallel to the downward silver trendline & then adjusting it to touch the bottom boundary of the xagusd price movement. This then forms a downward silver channel & as long as the xagusd price stays between these two channels the general silver market direction is intact the xagusd market direction will continue being bearish.
Trading The Downward XAGUSD Channel
The downward silver channel is used by xagusd traders to show levels where it is best to take profits. Silver traders will take some profit once the xagusd price touches the lower channel and wait for another retracement before opening a short sell xagusd trading again.
MT4 Tools For Drawing XAGUSD Channels
The silver trading tools to draw these silver channels studies on the MT4 xagusd charts can be found on the Lines Toolbar within the MT4 xagusd trading platform, to access this MT4 tool bar if it is not activated on your MT4 Silver Trading Platform, Click in 'View' Next to 'File' at the tops left corner of the MT4 Silver Trading Platform and click View, Then Click on Tool Bars, Then Check the Lines Tool Bar by clicking on it.
Below is the screenshot of these MT4 tools: just click on this MT4 channels drawing tool and select the point to where you want to place this silver channels tool on the xagusd trading chart.
MetaTrader 4 Technical Analysis Charts - Downward Silver Channels
MT4 Toolbar - MT4 Tools for Drawing Silver Trend-Lines and Silver Channels used to obtain these silver trend line drawing tools is shown above, to draw these silver trend line setups or silver channels, just select the above MT4 silver trend line drawing tools shown on the MT4 software and select the two points where you want to draw the downward silver trend line.
This silver trend line silver trading strategy is one of the simplest and popular xagusd trading technical indicators used by xagusd traders to analyze the xagusd trading market silver trend direction.
