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Analyzing some of the best MetaTrader 4 Technical Indicators

The forex market is the biggest around the globe with an estimated daily volume of two trillion dollars. To succeed in forex trading, you should understand how to predict price movements and market directions. Traders can achieve this by applying various types of analysis. 

Technical analysis is one of the most useful and commonly used when it comes to evaluating previous market data. This helps figure out potential upcoming market performance. Technical analysis involves the use of different tools and indicators such as MetaTrader 4 (MT4) indicators.

Understanding a Technical Indicator

A technical indicator is any form of metric whose value is obtained from any price activity in assets or stocks. Such indicators focus on forecasting price levels or the general price direction of a certain security by evaluating the past market performance. Common forex indicators are:

  • Moving Average Convergence Divergence (MACD)
  • Relative Strength Index (RSI)
  • Stochastics
  • Bollinger Bands
  • Money flow index (MFI)

There are diverse MetaTrader 4 custom indicators. Technical indicators do not evaluate any essential components like earnings, revenue, and profit margins. They are used by active foreign exchange traders in the market.

For a longstanding trader or investor, many technical indicators are usually irrelevant because they hardly define the impact of the underlying factors on price moves. Long term traders can gain from technical indicators because they execute an evaluation on the long term trend. This approach helps determine the ideal entry and exit points. 

Why use MetaTrader 4?

MetaTrader 4 offers Forex traders and brokers diverse trading capabilities. The platform works well for both experienced and novice traders and supports both custom and technical indicators. 

Installing Custom Indicators in MetaTrader 4

You can easily install custom indicators on your trading platform using the following steps.

  • Copy your custom indicator
  • Launch the data folder
  • Launch the MQL4 file
  • Launch the indicators file
  • Paste copied data
  • Reopen the MetaTrader 4 platform

Installing Custom Indicators to Charts in MetaTrader 4

Some traders face difficulties when it comes to adding indicators to MetaTrader 4 charts. However, this process is easy compared to the installation of indicators. All a trader needs to do is identify their ideal indicator from the Navigator section and follow the steps below. 

  • Click left and hold
  • Pull the custom indicator to the chart
  • Release the mouse to facilitate the addition of the indicator to your chart

MetaTrader 4 is a convenient and easy to use platform that offers traders everything they need to succeed in forex trading. 

Analyzing the Best MetaTrader 4 Indicators for 2020

Using indicators on the MT4 platform is one way of improving your trading experience and easing your technical analysis. 

·       Moving Average Convergence Divergence (MACD)

MACD is a trend pursuing momentum indicator that indicates the connection between two changing price averages. To calculate MACD, you need to deduct the 26-day EMA (exponential moving average) from the 12-day exponential moving average. Further, a 9-day EMA of the MACD is drawn above the MACD functioning as a prompt for buy and sell signals. MACD is defined in three ways; crossover, divergence, and dramatic rise. 

·        On-Balance Volume

This indicator is applied to ascertain the negative and positive circulation of volume in a security in connection with its price gradually.

The on-balance volume indicator is among the free MT4 indicators that forex traders can use. It is a simple standard that maintains a total cumulative volume by adding or deducting each period volume depending on the price changes. This standard inflates on the primary volume standard by merging both volume and price movement.

In this case, the volume comes before the price movement. For example, when a security experiences an increase in balance volume, it is an indication of increasing volume on rising price movements. A decrease indicates that the security is experiencing rising volume during down days. 


Execution of forex trading indicators is an everyday practice for many currency traders. They can demonstrate critical data that can help improve your trading experience. Apart from its primary features, MetaTrader 4 supports numerous indicators that can be useful for forex traders. Further, you do not have to be a professional to install custom-built indicators in MT4 because they are intuitive and easy to use. 




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