Technical analysis is a popular method of analyzing and forecasting price movements in financial markets. To identify potential opportunities, traders can use the MT4 download for PC option in the brokers to get the latest MT4 platform and available technical indicators. The MT4 platform hosts many trading tools updated with new software releases. It uses statistical and historical data to identify patterns, trends, support and resistance levels, and other indicators indicating future price movements.
The belief held by technical analysts is that prices demonstrate consistent patterns which can be utilized to forecast future price movements. Unlike fundamental analysis, which looks at current financial and economic aspects, technical analysis relies on past information to predict possible outcomes.
What are the available technical analysis tools on MT4?
The MetaTrader 4 platform provides traders with various technical analysis tools. It includes 30 built-in indicators, more than 2,000 free custom indicators, and 700 paid ones, as per the MT4 website. MT 4 also provides 24 analytical objects, such as lines, channels, etc., which you can use to perform custom technical analysis efficiently.
Adding Indicators
Using the built-in indicators on MT4 is a straightforward process that doesn’t require any additional downloads or installations. To use a built-in indicator, first, you need to open the MetaTrader 4 platform and select the Insert menu. From the drop-down options, choose the EA you want to use. Indicators are grouped by type; you can find them under specific sections like Trend, oscillators, volume, etc.
After selecting an indicator, you can set its parameters, including line style and color. Once you’re satisfied with the settings, click OK, and you can use the indicator on your MT4 platform.
Image 1. The moving average is a popular tool available in the indicators column of the MT4 navigator.
Adjusting Charts
The chart window is the primary area of the MT4 platform, which comes with a default black background. However, you can change the appearance of the charts according to your preference. To do this, simply right-click on the chart and select “Properties”. From there, you can customize the charts to suit your trading needs.
Image 2. The black chart window is the default MT4 template with white and transparent candles.
Charts are the primary source of information for many traders, so it’s essential to customize them according to their preferences. You can customize your chart quickly using the icons in the upper menu.
Image 3. The upper menu contains all the necessary tools for adjusting your charts. Traders can choose between different timeframes, draw lines, and magnify charts.
Chart Adjustment
By dragging and dropping, you can position multiple charts exactly where you want them. Don’t forget to use the minimize, close, and resize options on each chart as needed.
Image 4. To analyze multiple timeframes simultaneously, a trader uses the multi-charting function of the MT4. They adjusted the size of each chart as needed.
Templates
A template is a collection of settings that can be applied to multiple charts. These settings include chart type and color, diagram color, chart scale, OHLC line visibility, attached expert advisor with its parameters, custom and technical indicators with their settings, line studies, and day separators. By applying a template to a chart, the saved settings are applied to the financial instrument and the timeframe.
This means one can create a template that includes specific indicators and use it for other charts, ensuring they have the same appearance and settings. Templates are stored in TPL files in the /TEMPLATES directory and can be used repeatedly. Traders can modify the default template that is created during installation.
Profiles
Profiles are a useful feature that allows you to manage groups of charts easily. When you save a profile, each chart is stored with its individual settings and is placed in the same location as it was when saved. Any changes made to the charts within the profile are automatically saved. You can view the list of charts in the current profile by clicking on the “Window” menu. The name of the existing profile is displayed in the status bar window and can be changed in the profile management menu. The terminal has a default profile called “DEFAULT,” containing four basic currency pairs: EUR/USD, USD/CHF, GBP/USD, and USD/JPY.
Summing up
Technical analysis is a valuable tool for traders to analyze financial markets and forecast future price movements. The MT4 platform provides traders various technical analysis tools, including built-in indicators, analytical objects, customizable charts, templates, and profiles. By mastering these tools, traders can gain valuable insights and make informed trading decisions. However, it’s essential to remember that technical analysis is not foolproof and requires a sound understanding of market dynamics, risk management, and discipline.
Leave a Reply