How to Trade a Indices Uptrend
Up Indices trend is when the stock indices trading price of a stock indices chart is moving higher & higher. Indices trading prices in general close higher than where they opened.
How to Trade Upwards Indices Trend: Indices traders use upwards trend direction to open buy indices trades
Drawing a Upward Indices Trend Line
When the stock indices trading market moves up it forms higher highs & higher lows forming a bullish market movement - upward indices trend. An upward indices trend-line can then be plotted by connecting these higher lows of the stock indices trading price.
To draw this upward trend setup we use support levels. To plot the upward trend line correctly two supports are needed. When stock indices trading price touches the upward line we open buy stock indices trades and place stop loss just a few pips below the upwards trend line. Upward indices trend line below shows an example of this upwards trend.
Strategy for Trading a Upward Indices Trend - Drawing a Upward Indices Trend Line
The upward indices trend setup will show the general direction of the market as bullish therefore indices traders will only open buy long trades as long as stock indices trading price is within this indices up trend setup and within the support levels.
These support levels are the levels where if the stock indices trading market retraces then this support points will provide strong supports for the indices trading price. This is why many buyers will wait until stock indices trading price retraces downward and hits these retracements levels on the upward trend line to open buy stock indices trades. Trades opened at these levels have a high Risk:Reward Ratio and have little drawdown.
In the above setup the trader would have opened buy stock indices trades form the stock indices signals generated at the support 1, support 2, support 3 and these buy stock indices trades would have been opened with minimum amount of draw-down/retracement.
Upward Indices Channel
A indices channel is drawn by plotting a line that is parallel to the upwards trend line & then adjusted to touch the top boundary of the stock indices trading price movement. This then forms a channel - upward channel & as long as the stock indices trading price stays between these 2 channels the bullish market indices trend movement will continue moving up.
Upwards Indices Channel & Upward Indices Trend Trading Strategy
Trading the Upwards Indices Channel
This upwards indices channel is used by stock indices traders to show levels where it best to take profits. Traders will take some profit once the stock indices trading price touches the upper channel and wait for another retracement before opening a buy indices trading again.
