The MetaTrader 4 software, often referred to as MT4, has plenty of options and novice users find themselves overwhelmed with the settings. If you’ve never traded with MetaTrader 4, it’s basically a trading platform that opens up a window into the world of foreign exchange. While it’s true that it takes some time to figure everything out, there are really only a few settings that you will need to know to trade.
One of the most useful features is the ability to add indicators, expert advisors and templates to your trading window in MetaTrader 4. This is extremely valuable because there are thousands of MT4 users, as well as trading professionals and companies who share their configurations for free or for a small payment.
Trading indicators help the user recognize price patterns and aid in live trading.
There are thousands of different indicators out there. Indicators can produce buy and sell signals visible on the charts. Within MT4 there are many built-in indicators but users can also install custom indicators. These are very popular among traders as they often show much more information than the standard built-in ones. Indicators can also become parts of an Expert Advisor.
Expert Advisors are built to automate trading. So if you have an indicator that shows buy and sell signals, an expert advisor would execute the trades on the signals. In addition, Expert Advisors have rules that define each trading position according to a specific trading strategy and money management.
Expert Advisors are usually paid by subscription but there are also free ones available on trading forums.
Using EAs is completely automated so trades are executed without user input. The risks of such an automated system are obvious so most traders prefer to rely on trading indicators and live analysis based on their market knowledge.
In addition to Indicators and Expert Advisors, there are custom templates that can be added to MetaTrader 4.
Templates allow configuring the look and feel of your trading window. MT4 users often share templates with their settings.
Now that you are considering using MetaTrader 4 and giving trading ago it’s important to understand that all indicators are just that, indicators. There is no magical indicator that will make you rich. Markets are too unpredictable and too organic for anyone to predict the trends correctly all the time. However, there are indicators that can help with that.
There is a saying ‘The trend is your friend’ which is often used in trading classrooms. If you can just follow the trends you can make it a successful trader. However, it’s a lot easier said than done. Trends change and consolidate, their nature often seems very erratic. Indicators such as Moving Averages and Bollinger Bands help to see what’s going on and recognize certain market sentiments, whether it is bullish, going up or bearish, going down.
The type of moving averages to use largely depends on your trading strategy and the topic of moving averages in trading goes beyond the scope of this article. However, these are the simplest indicators one can use to trade binary options or Forex using the MetaTrader 4 software.