Upward Silver Trendlines and Channels

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

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

Since the trading market moves in a zigzag manner traders normally draw a trend line which portrays the general upward direction of the market.

A silver trading up trend occurs when the fore price will continue to make consecutive higher highs and higher lows. Each price high is going to be higher than the previous high - higher high, & each low is higher than the previous low - higher low.

Up trend lines gain more validity each time trading price touches this upward trend line but does not penetrate it. A silver trading up trend remains in place until this series of higher highs and higher lows is broken.

A downside penetration of an upward trendline is a technical sell trading signal, & usually the first indication that an upwards trend might soon end.

Drawing an Upward Trendline

When the trading market moves up it forms higher highs and higher lows forming a bullish market movement - Up-ward Silver Trend. An upward 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 trend line correctly two support zones are needed. When xagusd trading price touches the upwards trend line we buy and place stop loss orders just a few pips below the upward trend line. The diagram below shows an example of an upward trend line.

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

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

Upward Silver Channel

An upwards silver channel is plotted by drawing a line that's parallel to the upwards trend line & then adjusted to touch the tops boundary of the price movement. This then forms an upwards silver channel and as long as the price stays between these two trading channels the bullish market movement will continue moving upwards.

Trading The Channel

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

Trend Lines MT4 Trend Line Indicator

The MT4 Trend-Line Indicator drawing tools to draw these trend lines & silver channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 xagusd trading platform, To get this MT4 tool bar if it is not activated on your trading software, Click in "View" Next to "File" on top-left corner of MetaTrader 4 xagusd software & click View, Then Click on Tool Bars, Then Check the "Lines Tool-bar" by clicking on it.

Below is screen-shot Image of the MT4 drawing toolbar. To draw a trendline on a chart just click on this Meta Trader 4 trend line drawing tool and select the point where you want to draw the trend line.

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