Using metatrader 4 for its charting and technical analysis capabilities

Some of the most robust tools on the MetaTrader 4 (MT4) platform are those pertinent to technical analysis. They are largely what have made MT4 so appealing to traders all around the world. Let’s discuss. 

What are metatrader 4 charts?

Charts are vital instruments for analysing financial markets. MT4 charts allow traders to analyse price changes visually. They are also used for graphical analysis and to build indicators and line studies. Charts are necessary for technical analysis and for working Expert Advisors (trading robots used for automated trading).

Chart opening on the MetaTrader 4 platform

Up to 99 charts can be opened simultaneously. The offline use of charts via the MT4 terminal is also permitted. Three types of symbol charts exist and are very popular among forex traders when implementing technical analysis. These are bar charts, line charts and candlestick charts.

Bar chart

This chart is used considerably for معاملات فارکس. It consists of 4 main points, namely the open, close, high and low prices for a specific period. The high and low prices form the vertical bar. The opening price is to the left of the bar and the closing price is to the right. Bars may increase or decrease in size depending on price fluctuations or market volatilities. A bar also only depicts one period of time, for example, one hour, one day, etc. 

Line chart

A line chart consists of one line connecting all closing prices. This enables the forex trader to view the general price change of a currency pair over a specific timeframe. While simple to use, a line chart doesn’t give much information by way of price behaviour in that timeframe. It does however visualise trends very well.

A candlestick chart

Similar to a bar chart, the candlestick chart shows the same price information, albeit in a different way graphically. With candlestick charting, however, the block in the middle shows the range between opening and closing prices. The colour of this block also indicates a bearish or bullish sentiment in the market.

Period changes in charting

MetaTrader 4’s client terminal allows for the use of 9 different data periods. These range from 1 minute to 1 month, and are necessary for analyzing the market with technical indicators and line studies.

Graphical objects and charting

With the MT4 platform, a trader can manually impose several different graphical objects into a chart. These are:

• Line studies: This refers to lines and geometrical shapes that can be imposed into price or indicator charts. Examples are support/resistance lines, Andrew’s tools, Fibonacci, and others.
• Shapes: These include rectangles, triangles, and ellipses to mark specific areas in a price chart.
• Arrows: Arrows and signs are typically used to mark major points in a chart.
• Text: Text is used for inserting comments into a chart.
• Text label – This text is anchored to the chart window coordinates and doesn’t move when the chart is scrolled.

Technical analysis and automated trading

MT4 is widely sought-after for its technical analysis capabilities and automated (algorithmic) trading. These features allow traders worldwide to monitor, analyse and trade in some of the largest financial markets globally. They also allow traders to execute complex trading plans and strategies, to maximise profits potentially.

تحلیل تکنیکال

The technical analysis tools offered by the MetaTrader 4 platform enable global traders to better analyse and trade in the financial markets. Key technical analysis tools include 30 built-in technical indicators, 2k custom indicators (free) and over 700 paid ones, allowing a trader to analyse the market of any level of complexity. MT4 platform also offers 24 analytical objects, e.g., lines, shapes, arrows, Gann and Fibonacci tools, etc.

Execution modes

MetaTrader 4 also offers several execution modes for increased flexibility and ease of use, namely instant, request and market.

Order requests

In addition, the MT4 platform facilitates different order requests as well. These include 2 market orders, 4 pending orders, 2 stop orders, and a trailing stop.

Symbols

MetaTrader 4 offers approximately 1k symbols, and each one can be displayed in 9 timeframes. These range from 1 minute to 1 month. This enables traders to view quotes in more detail and combine technical indicators and graphical objects on different periods of one symbol.

Automated trading

Automated (algorithmic) trading is a common strategy frequently used by traders to reduce the impact of emotions on trading outcomes. Trading psychology is a big topic because feelings can drastically impact how one trades. Emotive trading is when one is driven by fear, greed or impulsiveness to make trading decisions. Often, this results in adverse results, with the trader suffering considerable losses. But how does automated trading achieve this?

In algorithmic trading, a trader will set rules or criteria that the system will use to enter or exit positions. Once the trader has programmed these rules or criteria, the trade automation is implemented by Expert Advisors (EAs), also known as trading robots and technical indicators. Algorithmic trading is appealing for its ability to make trading more efficient, and because traders can use it to execute varied trading strategies. It is not without risk however so trades must still be tracked to safeguard one’s funds.

Using a demo trading account

A demo trading account is a fantastic way for a trader to learn how to use charts and technical analysis. An award-winning trader like IronFX offers a demo trading account to help you increase your understanding of these MetaTrader 4 tools. The demo account offers a simulated trading environment in which you can examine or create charts and apply technical analysis. You can use virtual money to enter or exit trades and assess trading outcomes. Not having to use your own money will give you the confidence to build your skills without incurring any losses. Once you’ve gained the knowledge and expertise needed to trade in a live environment, you can then open a regular trading account.

Why trade with IronFX Metatrader 4?

IronFX’s MT4 platform offers traders an optimal trading experience. It provides access to 500+ tradable instruments across 6 asset classes, like shares, indices, forex, futures, metals and commodities. Traders can choose from multiple trading accounts, all of which cater to the different needs of individual traders. IronFX also offers fantastic trading opportunities through flexible leverage, competitive spreads, mobile trading apps, fast executions, quick and easy deposits and withdrawals, etc. IronFX also offers a wealth of outstanding educational resources to widen your scope of knowledge and boost your skills. A multilingual client support team is also available to provide assistance and answer your most pressing questions.

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This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked, in this communication.