Metatrader or commonly referred to as MT4 is one of the worlds most popular chart trading platform. It comes with a huge array of built in features, but the power in MT4 is the ability to program your indicators and auto-trading systems, known as expert advisors. In addition to this you can also backtest trading systems to see how profitable they would be in the real market.
Building Custom Indicators
Using a unique language called MQL, programmers can build very complex indicators which monitor a whole bunch of different variables. Programmers use price levels and historic data to make indicators that can help forecast future movements of the Forex market.
There are lots of free MT4 indicators that you can download online, and they are very easy to install. By simply opening up your MT4 data folder, pasting in the indicator file, then adding it to your chart, in seconds you can begin using very unique and profitable trading strategies.
Expert Advisors and What They Do
With a bit of knowledge you can code up an auto-trading program called an expert advisor. This will stay loaded on your chart and when the conditions you have specified in the code are matched, the program will enter a trade, it can place your stop loss and take profit orders at the same time, even trail and scale in / out of positions.
Expert advisors can use any indicator, price level or condition based on time that you want, and trade automatically. They are revolutionizing the forex markets.
Scripts and Bits
Scripts allow you to pre-program a routine, or procedure that you make on a regular basis, and allow you to drag one to the chart and it automatically runs it for you.
For example, you may have a script which closes all open positions, or a script that moves up a stop loss by 5 points..
Each time you drag the script from the navigation tree to the chart, the action is performed. This saves you a lot of time when you are trading, and allows you to concentrate on the movement of the market, as opposed to filling out difficult order forms, or looking for buttons to click.
What Are The Best Indicators
Some of the best indicators are completely free to download, and available online for traders. For instance the support and resistance indicator for MT4 is a popular one, which shows where prices could bounce or stall. Another which works well with support and resistance is the pivot point indicator, which uses a calculation based on the previous days high, low and close, then plots a line which is used as a bias to the days direction on any forex pair.
If you are more advanced with your analysis you may try the Elliott wave indicator, coupled with a currency strength indicator for MT4 and it can be a very powerful system. However, Elliott Wave is a complex analysis theory which takes some time to learn. Using the indicator alone is not much help.
Two which are useful when used together are a volume indicator and trend indicator for MT4. Identifying a trend and then using volume to decide when to enter a trade is often a very good way to catch a new push in a move, whether that is up or down. Trends work in both directions, so this will help you find strong ones to start trading.