Drawing Upward Trend Lines & Channels

1. DRAWING UPWARD TREND
LINES & CHANNELS

2. POINTS TO BE COVERED TODAY:
 Drawing Upward Trend Lines and Channels
 Upward Trending Market
 Drawing An Upward Trend Line
 Upward Trend Line - Gold Trading
 Drawing Upward Channel
 Upward Channel - Gold Trading
 Meta Trader 4 Tools for Drawing Upward Trend Line and Channels
 Marubozu & Doji Candlesticks

3. Drawing Upward Trend Lines and Channels
 An upward trend line is a line drawn on the Gold trading chart when the
general trend of the prices is moving upwards and therefore this line is
drawn below these upwards trending prices by connecting at least two
lows of the upward price trend. This line will show the general trend of
the market to be upwards.
 The example below explains this concept and explains how prices move
when in an upward trend.
 When the market is moving upwards it keeps forming new support
levels as it moves upwards and these support levels are the ones used
to draw the upward trend line.
 Because the market moves in a zigzag manner, traders will normally
draw a trend which shows the general upwards trending direction.

4. Upward Trending Market

5. Upward Trending Market - I
 An upward trend occurs when the prices of Gold keep making
consecutive higher highs and higher lows. Each high is higher than the
previous high - higher high, and each low is higher than the previous
low - higher low.
 The Upward trend lines gain more validity each time the price of Gold
touches the line but does not penetrate it.
 An uptrend remains in place until this series of higher highs and higher
lows is broken.
 A downside penetration of an upward trend line is a technical sell signal,
and usually the first indication that an uptrend may soon end or start to
consolidate.

6. Drawing An Upward Trend Line
 When the online Gold metal market moves up it forms higher
highs and higher lows forming a bullish market movement.
 An upward trend line can then be plotted by connecting these
higher lows.
 To draw this setup we use support levels made by the prices.
 To draw an upward trend line correctly two support levels are
needed.
 When price touches this upward trend line we buy and place a
stop loss just a few pips below this trend line.

7. Upward Trend Line - Gold Trading
 The diagram
behind shows an
example of an
upward trend line.

8. Drawing An Upward Trend Line-I
 The trend line setup will show the general direction of the Gold market as
bullish therefore traders will only open buy trades as long as price
movement is within this setup and within the support levels.
 These are the levels where if the market retraces then these points will
provide strong supports for the price. This is why many buyers will wait until
price retraces downwards and hits these retracements levels to open buy
trades.
 Trades opened at these levels have a very high Reward: Risk Ratio and are
very profitable.
 In the above setup the trader would have opened buy/long trades from the
signals generated at the support1, support2, support3 and these trades
would have made a lot of profits with minimum amount of draw-
down/retracement.
 This is why many traders like to trade using this trend line trading setup.

9. Drawing Upward Channel
 An upward channel is drawn by drawing a line that is
parallel to the upward trend line and then this new
line is adjusted to touch the top boundary of the price
movement.
 This then forms a channel of the price and as long as
the price stays between these two channels the
bullish market movement of Gold prices will continue
moving up.

10. Upward Channel - Gold Trading

11. Trading The Upward Gold Prices Channel
This upwards channel is used by Gold traders
to show levels where it best to take profits.
Gold metal traders will take some profit once
the price touches the upper channel and wait
for another retracement before opening
another buy trade again.

12. Meta Trader 4 Tools for Drawing Upward
Trend Line and Channels
 The tools to draw these setups on the MT4 are located
on the Meta Trader 4 drawing toolbar within the Meta
Trader 4 platform, to access this toolbar if it is not
activated on your platform, Click in "View" Next to
"File" at the top left corner of the MT4 and click
"View", Then Click on "Tool bars", Then Check and
select the "Lines Toolbar" by clicking on it.

13. Meta Trader 4 Toolbar For Drawing
Upward Trend Line And Channels

14. MARUBOZU CANDLESTICK PATTERN
 The Marubozu candlestick pattern is a one-candle, easy-to-spot signal with a very
clear meaning. It comes in both a bearish (red or black) and a bullish (green or
white) form, and it commands attention with its long and sturdy shape.
 To learn more about how Marubozu candlesticks form, why they form, and what
they can tell you about the current state of the market, please scroll down.
 The word marubozu means "bald head" or "shaved head" in Japanese, and this is
reflected in the candlestick's lack of wicks. When you see a Marubozu candlestick,
the fact that there are no wicks tells you that the session opened at the high price
of the day and closed at the low price of the day.
 In a bullish Marubozu, the buyers maintained control of the price throughout the
day, from the opening bell to the close. In a bearish Marubozu, the sellers
controlled the price from the opening bell to the close.

15. MARUBOZU CANDLESTICK PATTERN-I
 Depending on where a Marubozu is located and what color it is, you can make
predictions:
• If a White Marubozu occurs at the end of an uptrend, a continuation is likely.
• If a White Marubozu occurs at the end of a downtrend, a reversal is likely.
• If a Black Marubozu occurs at the end of a downtrend, a continuation is likely.
• If a Black Marubozu occurs at the end of an uptrend, a reversal is likely.
 However, because these conjectures fail to provide 100% certainty, it is always
best to confirm your suspicions by watching the candles that appear after the
Marubozu.
 If the next few candles confirm your forecast (or if you spot another supportive
candlestick pattern), feel free to move forward with confidence.

16. MARUBOZU CANDLESTICK PATTERN-II

17. Doji Candlesticks
• A Doji is a candlestick pattern that looks like a cross as the opening price and the
closing prices are equal or almost the same.
• When looked at in isolation, a Doji indicates that neither the buyers nor sellers are
gaining – it’s a sign of indecision.
• There are different types of Doji candlestick patterns, namely the Common Doji,
Gravestone Doji, Dragonfly Doji, and Long-Legged Doji.
• Before acting on any signals, including the Doji candlestick chart pattern, one
should always consider other patterns and indicators.
 A Doji is a candlestick pattern that looks like a cross as the opening price and the
closing prices are equal or almost the same.
 The word Doji is of Japanese origin which means blunder or mistake that refers to
the rarity of having the open and close price be exactly the same.

18. Doji Candlesticks-I
 Depending
on where
the
open/close
line falls, a
doji can be
described
as
a graveston
e, long-
legged,
or dragonfly
.

19. Formation Of Doji Candlesticks
 This candlestick is formed when the market opens and bullish
traders push prices up whereas the bearish traders reject the
higher price and push it back down.
 It could also be that bearish traders try to push prices as low
as possible, and the bulls fight back and push the price up.
 The upward and downward movements that happen between
open and close form the wick.
 The body is formed when the price closes at or almost the
same level as it opened.

20. Types Of Doji Candlestick Pattern

21. DRAWING UPWARD TREND
LINES & CHANNELS

22. THANKS FOR LISTENING
DRAWING UPWARDTREND LINES &CHANNELS