Introduction
The MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are among some of the widely used trading platforms in the global market because of the clear relationship it establishes between user and the machine and availability of strong tools. Based on the above notes, the most impactful point which could benefit the traders is their technical indicators. They help the traders judge the current state of the market, determine the further tendencies that may occur and of course, make the right trading decisions. This article is intended to explain the procedure of adding some indicators in MetaTrader 4 and MetaTrader 5 trading platforms, in addition to showing the method of application.
Installing Indicators on MT4
- Downloading the Indicator
To begin using an indicator, the first thing that you must do is download it. Some of them are open and may be found on different Web-sites for free, whereas others can be obtained for a certain fee in the MetaTrader Market section. Make sure that you download the indicator file, it could be in .exe format and contains numerous indicators. mq4 or . ex4 extension for MT4).
- Locating the Data Folder
Eventually you download the indicator and you are good to go trade when you open the MT4 platform. Click the option that states “toolbar” and at the top of the drop down menu click on “File” at the bottom of the drop down menu click “Open Data Folder”. This will open windows explorer at the root of all the platform data storage resp. at the resp. platform’s data storage area.
- Installing the Indicator
To do this, expand the directory tree in the computer and go to the “MQL4” folder and then the “Indicators” folder within the MQL4 folder. Save the copied file to the particular folder below as a downloaded indicator file.
- Restart MT4
To make the indicator appear within a platform, close the MT4 terminal and then run it again.
- Adding the Indicator to a Chart
You have installed the indicator and it is now time to populate it into a chart of your choice. If you wish to add the indicator after drawing the chart, right-click on the chart and click the heading “Indicators List”. When you have matched your indicator with ‘Custom’ do as follows Active the Tab and look at the list of indicators. If you’ve already installed it, double-click on the application icon, and a settings window will be displayed. Type in the required data and click the “OK” button to accept the changes set in the Internet Options.
Installing Indicators on MT5
- Downloading the Indicator
Like with other indicators, the first step is to download the file and save it to your computer, in this case, it is a . mq5 or . ex5 extension for MT5.
- Locating the Data Folder
Open your MT5 platform. In the users menu at the top, click on the “File” and find and click “Open Data Folder”. This will take you to the physical/analytics location of the data on the trading platform.
- Installing the Indicator
The path is Program Files MetaTrader and then MetaEditor -> File -> Open Folder – MQL5 -> Indicators. You should uncompress this file and copy into this directory the contents that have been downloaded from your selected broker.
- Restart MT5
To integrate the instrument into the new indicator, go to ‘File’ and select ‘Restart’ to refresh the MT5 platform.
- Adding the Indicator to a Chart
On the right pane, right click in an empty area in your preferred chart and choose “Indicators List.” Select the option “Custom,” extend the list, locate your indicator, and click the computer mouse twice on it. If needed, adjust any of those settings and then click OK.
Using Technical Indicators on MT4 and MT5
Understanding Indicator Settings
They are accompanied by the individual parameters that allow you to adjust the indicator according to the Lexat algorithm to meet the requirements of a particular trading strategy. Fixed parameters comprise the periods of comparing, computation techniques, and other customizable graphic features such as colors and line thicknesses. Take your time and try to learn the basic setup of these settings so that you can benefit from each indicator.
Popular Indicators to Try
Moving Averages
Moving averages are basic signals that reduce price fluctuation information with the aim to highlight trends. With regards to moving averages, there are two of the most frequently used types today and they are namely the Simple Moving average and the Exponential Moving average.
Relative Strength Index (RSI)
Relative Strength Index, commonly abbreviated as RSI, was developed by J. Welles Wilder initially for the purpose of providing a way to measure both velocity and the change in velocity of the higher volatility of the enhanced price movements, to offer information on overbought/oversold conditions.
It is a technical indicator that has geared its calculations toward the momentum on the stock chart and it ranges from 0 to 100.
Bollinger Bands
Speaking of Bollinger Bands, they include a center line or SMA and two parallel lines above and below it. Containing these bands expand and narrow depending on the volatility of the market, which helps to detect situations when it is overbought or oversold.
MACD (Moving Average Convergence Divergence)
To be more elaborated, it can be analogous usually discussed in terms of the MACD or Moving Average Convergence-Divergence which is a type of momentum indicator that determines the mere trend of a security and that is reciprocated from the differentiation of the difference of the mere trending price of a security and the moving average thereof. Daily chart: These tend to help depict the dynamics in terms of magnitude, direction of trends, tempo and sustainability of the trend.
Tips for Effective Use of Indicators
Avoid Overcrowding
Unfortunately, you also get a lot of ‘noise’ from them if you have too many of them in your analysis. Focus on several critical and logically connected indices that will help you adjust your trading plan.
Regularly Update Your Indicators
It is essential to check and make sure all of your indicators have current versions available. Updates that are created and released by developers may include performance enhancement, as well as addition of useful features and functionalities.
Conclusion
MetaTrader Indicators are excellent for MetaTrader 4 and MetaTrader 5 and in this lesson you will discover how they can be applied and what value they may bring to your abilities in trading. As indicated in this guide, it is possible to add more custom indicators on your platform and then apply techniques which will provide the right trading strategies. Due to this, you should consider how to combine indicators, and always backtest trading strategies in addition to practicing the same to increase your chances of success in trading.
