In the current era of the AI revolution, we cannot leave the MT 4 algorithmic solutions behind. The trading software has been in function since 2005 and is the primary choice of many traders worldwide. It has a dedicated MQL 5 marketplace where traders gather to share their expert advisors and trading ideas.
New indicators constantly pop up daily, promising thousands of dollars yet failing to deliver on their promise. To filter out all the noise, we have prepared a list of the top MT4 indicators you can use right now to maximize your trading consistency. Before proceeding, note that it is better to use MT4 for PC as you’ll get a clear picture and a good understanding.
Technical traders commonly use moving averages to identify trends, support, and resistance levels. You can use them with most trading strategies.
The MT 4 platform hosts four different types of moving averages, i.e.:
- Simple. It is plotted by calculating the average price over a specific period
- Exponential. Similar to the simple moving average, however, it emphasizes the current market data more.
- Smoothed. An EMA which provides an equal weighting to the historical events in addition to the current ones.
- Linear weighted. It also has a significant emphasis on the more recent data.
Moving averages in MT 4 can be bread and butter for a price action trader. Let us go through an example to have a better understanding.
The stop and reversal system is a technical indicator commonly used to determine the current trend. It can also be used to predict when the market’s direction is changing.
Traders can use SAR values from different time frames within the MetaTrader software to get more confluence on their trades. You’ll be amazed by its accuracy. However, keep in mind that the parabolic SAR is a lagging indicator. It cannot predict future prices, which makes it prone to generating false trading signals.
One common practice that traders use is to combine the SAR with moving averages. Suppose the 200 period MA is moving upward with the SAR being bullish. In that case, it may indicate a possible buy condition. The opposite can be said for a sell trade.
The relative strength index indicates the overbought and oversold conditions of the market. The indicator is simple to use, i.e., place a sell trade when the RSI is above 80 and a buy when it is below 20.
The MT 4 trading platform allows you to choose an RSI period value. A higher value would let the indicator take more market history to build up the line. This smoothens the line with fewer trading opportunities available for traders.
A standard value for RSI is 14.
Similar to the parabolic SAR, you can also combine RSI with other indicators such as MACD. Price action traders can use the RSI indicator in the MT4 platform with their technical analysis. A good example of a price action trade is plotting the support and resistance lines, waiting for the RSI to reach overbought or oversold condition, and then placing the long or short.
Divergence strategies are also a long-time favorite of traders. Divergence is when the market moves in one direction while the indicator points in another. In RSI terms, the divergence occurs when the price makes higher highs and higher lows, while the relative strength index produces lower highs and lower lows. This indicates a substantial shift in the current market trend.
The moving average convergence divergence highlights the changes in the strength, direction, and duration of a trend in an instrument’s price. In the MT 4 platform, the MACD indicator uses three EMAs fast, slow and signal.
The indicator is pretty easy to use. The MACD line above the 0 mark signifies a bullish market and vice versa. This can be used to time your exits or entries into the current trade.
For example, a trader with a buy trade on silver sees a potential reversal in trend. To get further confirmation, they use the MACD indicator, which paints some red bars and a line crossover to the bottom side.
While the trading indicators with the MT 4 platform offer, a unique insight into the markets, traders should not rely on them alone. Self-judgment is important when it comes to trading consistency. These expert advisors are only meant to help improve your current market approach. Traders should also beware of fraudsters selling holy grail indicators. No expert advisor can predict the market with total 100% accuracy.