MetaTrader 4 is the ultimate trading platform that boasts global recognition. It comes with an intuitive and user-friendly interface featuring various charting and analytic instruments to provide traders with practically everything they may need to establish a strong presence in the financial market.
What's more, the platform is free. However, the baseline version lacks several crucial functions that can boost your trading. Also, they will not guarantee high profits right away, they ensure an in-depth market analysis as well as the ability to predict the rend and price movement. We are talking about the latest indicators for MT4.
Easy programming lets traders benefit from a variety of best MT4 indicators that can be connected at no cost. The software is easy to configure while you can easily find the needed indicator online and start using it along with the trading platform.
So, what are the best indicators for MT4 to consider in 2020? How can they ensure the desired edge for a trader? Learn all the insights from the article.
What Are Technical Indicators for MT4?
First of all, let's make sure we all clearly understand what a technical indicator is. As a trader, you are used to dealing with different charts and analytic tools. They make it possible to understand the act on price movement better. Indicators help to analyze asset trends. They can be used to measure volatility, track the price movement, and more.
These tools can be divided into 4 major categories:
- Trend Following;
Each category relies on the particular functions that refer to a specific indicator. Those functions may range from delivering a clear vision of support and resistance to currency pair price at a given period. As we have mentioned earlier, each of the above-mentioned indicators can be easily integrated with the MT4.
Steps to Integrate Custom Indicators for MT4
The procedure is pretty simple. You are not supposed to have technical skills or deal with the time-consuming downloading process. To have the latest MT4 indicators installed to your platform, you need to complete several easy steps:
- Find the indicator you need and copy it.
- Go to the data folder and open the MQL4 file.
- Copy and paste the indicator's data from its file and restart MetaTrader 4.
- Use the best trading platform together with integrated technical indicators.
Steps to Add MT4 Indicators to Trading Charts
This process is a bit more complicated and confusing, especially for beginner traders. However, it will let you use indicators and have them depicted on the trading charts. Just make sure you know how to read those charts properly.
Go to the "Navigator" window and look for the indicator you need. When you are done with this process, complete the following steps:
- Click on the tool with the left mouse button and hold it.
- Drag-and-drop the indicator to the chart.
- Have the tool successfully added to the chart.
As you can see, there are no reasons to be confused with MetaTrader 4. The platform delivers everything you need out of the box along with real-time access to market analysis and liquidity, improved flexibility with multiple trading orders, enhanced security, automated trading options, and more.
The List of 4 Best Indicators for MT4 in 2020
Now, let's have a look at the 4 best indicators for MT4 to consider in 2020. The following will not only enhance your trading but also improve your experience in exploring trading charts and technical analysis. Here they are:
- Money Flow Index or MFI;
- On-Balance Volume;
- Accumulation/Distribution Line.
Now we are going to have a closer look at each of them.
1. MACD Indicator for MT4
This indicator refers to the trend following category. It is used to observe how the two moving averages of prices react. It has a signal line (9-day EMA) that marks the buying and selling signals. The line is available on default.
Besides, a trader can make calculations by means of extracting 26-day EMA from the 12-day signal line. The good news is that the indicator comes as a built-in feature. So, you do not need to download it separately for MT4.
2. Money Flow on Index (MFI) Indicator for MT4
The MFI indicator helps to identify at what rate it is better to invest in an asset or sell it. If you are not new to the Relative Strength Index, you will hardly find it different to work with MFI. The concept is pretty similar. The only difference here is that you still need to take into account the traded volume.
To analyze the MFI indicator properly, you also need to consider the following factors:
- The divergence between the way the price moves and the MFI. If the indicator falls while the prices are going up, the price is very likely to turn.
- If the indicator exceeds 80 or falls below 20, it means a high probability of the market to hit the bottom or the potential peak.
3. On-Balance Volume Indicator for MT4
Also known as OBV, the indicator refers to the momentum category and depicts the volume concerning the price.
Beginners will find it easy to use the tool. If you track an asset that closes at a higher level if compared to the previous close, the day volume must be considered as the up-volume. And vice versa: if the security ends up at a lower level, it is a down-volume asset.
4. Accumulation/Distribution Line Indicator for MT4
This one is mainly influenced by the volume and price. Reading the indicator is very simple. If the volume is high, the price is contributed by the coefficient in a great way. As a rule, it comes in the same value as the indicator.
Besides, the instrument helps to measure the respective sales volume as well as confirm the change of the price movement. If you see the divergence between the asset price and the indicator, it means that the price is going to change in the nearest future. What's more, it is going to move in the same direction as the indicator.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.