MetaTrader 4 (MT4) is among the most popular Forex trading platforms that we have now. Its success can somehow be attributed to these two reasons; MT4 is flexible enough that traders can easily adapt to the trading conditions set by the broker. Through this trading platform, brokers can easily provide services to their target audiences through the use of the A-book model or the B-book model.
Advantages of MetaTrader 4
For traders using this platform, the technical tools work very effectively when it comes to computer analysis and technical analysis as well. Additionally, the MQL editor is being used in MetaTrader, allowing enthusiasts to create their very own technical and analytical tools or even an automated trading system. The support tools can also be taken into the “market’ section located at the official website of MetaQuotes, the software developer of MetaTrader 5. You can even download this trading platform free of charge when other same quality trading platform charges as much as USD20,000.
Knowing all the advantages brought by this trading platform, most newbie traders are paying more attention to the custom indicators that are being offered in MT4. Almost all the indicators being used in MT4 are for commercial purposes, even its algorithm is based on the indicators and oscillators that are considered as ‘standard trend’. When it comes to the entry point, you can see the signal after it gets processed accordingly.
Moving Average
One of the most used indicators in MetaTrader 4 is the Moving Average. It is also known to be very effective and simple to use. Moving Average is based on several trading strategies and oscillators. It was this very indicator that Bill Williams used to create the Profitunity TS.
How does this indicator work? It is very simple. The indicator calculates the average price for a given period, something that is personally set by the trader within the input parameters. You can use this indicator to calculate average prices such as high/low levels and open/close. Moving Average is easy to use and yet it is very effective.
MA+Fractals
When trading, you have to transfer three indicators into the chart of your preferred financial instrument:
● An exponential moving average applied to High
● An exponential moving average applied to Low
● The Bill Williams fractals are used to remove false signals.
One obvious advantage of MA+Fractals is its high profitability and very accurate detection of trading signals. The only drawback that it has is the time you have to spend to obtain successful trades. You need undivided attention and only focus on trading.
Bollinger Envelope
This indicator is a standard trend that came from moving averages. When applying this tool, you need to follow these optimal parameters;
Bolliger bands must be seen as adaptive trend lines.
Bollinger envelope is known to generate very accurate trading signals. Therefore, it is highly recommended to use this indicator when dealing with stock assets and currency pairs. But when it comes to cryptocurrencies, this indicator can be too risky due to the pricing of altcoins.
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