Metatrader 4 for forex trading and technical analysis

There is no doubt that the MetaTrader 4 (MT4) trading platform is a universal favourite. Traders around the world use it because of its robust trading features and ease of use. Developed in 2005, MT4 has gone on to provide all types of traders with practically everything they need to trade in different financial markets. In this article, we’ll look at what makes MetaTrader 4 so popular, with a focus on its technical analysis capabilities. We also touch on automated (algorithmic) trading, another sought-after MT4 feature.

What makes MT4 popular among global traders?

Regardless of your expertise as a trader, the MT4 platform offers a top-tier forex trading experience. First and foremost, MetaTrader 4 is an incredibly flexible trading system. Whether you are new to trading or an absolute pro, MT4 can be customised to the needs of practically anyone. The platform also offers some of the most robust forex trading tools amongst its competitors. It is renowned for its reliability, as evidenced by the hundreds of thousands of traders using the system over the years.

Ease of access and simplicity are the other two factors that make MetaTrader 4 a go-to trading platform. Navigation across the system is user-friendly, and finding features like charts, signals and indicators is fast and easy. This makes trading incredibly convenient.

MT4 is also available across a wide range of devices including Android, iOS Dan Windows PC. It can also be accessed via several web browsers. In addition, MetaTrader 4 mobile applications enable traders to trade from anywhere in the world provided there is internet connectivity. As a result, trading opportunities abound for those without prior access to global financial markets.

The MT4 server reportedly offers unrivalled server stability, supporting tens of thousands of trades at the same time. It is said to utilise minimal resources from a trader’s computer. The platform reportedly works well, even with low internet bandwidth. Communication between a trader and broker is facilitated by a mailbox in the client terminal of the MT4 system, making real-time message exchanges possible. MetaTrader 4 also offers stellar security, providing peace of mind to traders everywhere.

The MetaTrader 4 platform is however probably most renowned for its technical analysis and algorithmic trading capabilities. 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.

MetaTrader 4 and technical analysis

MT4’s exceptional technical analysis tools are what make the platform stand out from its competitors. From 30 built-in technical indicators, 2k custom indicators (free) over 700 paid ones, 24 analytical objects, and 1k+ symbols, the system makes technical analysis easy and convenient. The platform offers everything a trader needs to analyse markets of any level of complexity and execute the most challenging forex trading strategies.

The MT4 also has 3 three execution modes available (instant, request, and market) which a trader can choose from based on their trading situation, making trading even more flexible. The system also supports 2 market orders, 4 pending orders, 2 stop orders, and a trailing stop.

MT4 and automated trading

Also known as algorithmic trading, automated trading appeals to traders for several reasons. One of the biggest benefits automated trading offers is minimising the impact of one’s emotions on trading decisions. Forex trading is a highly volatile activity, making it incredibly emotive and super stressful. Feelings of fear and greed can influence trading negatively, resulting in substantial losses of capital. Algorithmic trading removes feelings from the execution of trades. Instead, it automates the process of entering and exiting positions through the deployment of trading robots, also known as Expert Advisors (EAs), as well as technical indicators.

Automated trading is based on a system whereby predefined rules or criteria are set that establish entry and exit points in the financial market. Once programmed, the trades are executed and monitored automatically, without trader intervention.  Algorithmic trading can increase the efficiency of trades and add value to trading outcomes.

Using EAs, traders can execute almost all types of trading strategies. EAs and technical indicators are built using a programming language called MetaQuotes Language 4 (MQL4).  MQL4 is a fast and flexible programming language for developing EAs and contains a large number of different functions.

While algorithmic trading is highly effective, it does come with some inherent risks. A trader should still monitor their trades to ensure their strategy is being implemented correctly. The trader should also have a proper risk management plan in place to mitigate unanticipated loss of funds. This includes stop loss orders, trailing stop orders, etc.  

Learning how to use MetaTrader 4

If you’re looking for a way to learn more about the mechanics of MT4, opening a demo trading account with a reputable broker is key. A demo trading account will allow you to explore the MT4 platform and execute trades, so you can better understand the trading experience. A demo account typically simulates a real-life trading environment, in which you can execute your trading strategies using virtual money. Without risking your money, you can open and close positions and analyse outcomes. Having the ability to implement different trading concepts without losing money will help you gain much-needed practice. In turn, after time, you will in all likelihood build up the necessary experience to move to a live trading account.

Remember, a demo trading account benefits novice traders as well as those with trading experience. Aside from being a great educational tool, a demo account allows professional traders to try new techniques to gauge potential success before implementing them in a live trading environment.

Mengapa berdagang dengan IronFX?

IronFX’s MetaTrader 4 platform offers traders an optimal trading experience, with access to a range of top-tier functionalities and features. IronFX traders can trade more than 500 tradable instruments across 6 asset classes, like shares, indices, forex, futures, metals and commodities. Traders have multiple different trading accounts to choose from, catering to the requirements of almost all traders. They can also enjoy flexible leverage, competitive spreads, mobile trading, fast executions, quick and easy deposits and withdrawals, and more. 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.

Disclaimer:

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.