The Latest Trends on MetaTrader 4 Indicators: Hip or Hype?


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    The Latest Trends on MetaTrader 4 Indicators: Hip or Hype?

    There’s nothing wrong with being technical in the foreign exchange (forex) market. Yet, this is not to discredit the fact that an investor needs to stick to the fundamentals to trade currencies. Even Warren Buffett does that. Yet, at the same, traders need to apply a little bit of practicality when trading in the forex market.

    A technical indicator is a heuristic or mathematical calculation that can be applied to price and volume data. In essence, this indicator predicts future price movements by analyzing the direction and strength of the underlying price action. We normally refer to technical indicators as short or irregular squiggly lines located above, below, and on top of the price information on a chart. In forex trading, traders use this when following technical analysis.

    There are two types of technical indicators. The first one is the lagging indicator to monitor the price action. It merely informs the trader of price movements (up or down) to execute trades accordingly. On the other hand, the leading indicator sends trade signals where a trend is about to emerge. It attempts to forecast price by using a shorter period in its computation. To simply put it, lagging indicators are used when a market begins a trend and leading indicators are applied if the market is moving sideways.

    When starting out in the forex arena, it is recommended to search for the best technical indicators as such trading tools are important to follow the price movement. There are five categories of technical indicators: mean reversion, momentum, relative strength, trend, and volume. It influences the way a trader interprets a trend both on positions and in the wider averages, as well as the trading opportunities which can emerge while conducting due diligence.

    A bunch of MetaTrader 4 technical indicators

    Below you will find the different technical indicators that can help in representing quotes in an accessible form for easy understanding. It is capable of analyzing financial markets using different algorithms. Did I mention these MetaTrader 4 indicators can be downloaded for free?

    Automatic Risk Reward Box Create. Trust automatic risk reward box create to automatically produce a risk/reward box on all open charts base on high and low prices along with the old candles. The trader can easily drag this indicator and configure the size and price to his preference.

    Bar Time Count Down. Its main goal is to count down the remaining time of the existing bar in the format HH:MM:SS. It can be placed to follow the current price or at the top of the chart.

    Consecutive Identical Candles. Consecutive identical candles provide the number of identical candles that have appeared on currency pairs in a consecutive manner. This indicator can aid in determining the probability of a correction (or reversal) after an increase in the number of similar candles.

    Daily Pivot, Resistance and Support Levels Assist. It reveals the pivot point, resistance, and other related support level values located in the corner of a chart. The user can change the position where the values are displayed by changing the BASE_CORNER variable under the “Inputs” tab. This indicator can also be utilized for plotting pivot point, resistance, and support levels on the chart using vertical lines. If the market is trading above the pivot point, the market's sentiment is bullish and the trader may discover resistance levels. On the other hand, if the market is trading beneath the pivot point, the market's sentiment is bearish and may skid past the support levels.

    Deviation Rate BIAS MT4. This indicator refers to the average price to determine the divergence rate. Frequently used in stock trading indicators, when the divergence rate is high, the market price may retreat.

    Hull Moving Average. It is an indicator anchored on the exponential moving average (EMA), one of the most frequently used forex trading tools. The original hull moving average is computed using the linear weighted moving average (LWMA). But there are instances that the manner of computation tends to overshoot.

    Independent Chart. With the independent chart indicator, the trader can indicate all his drawing objects to a particular symbol and timeframe. For instance, if a trader wants to draw any object on the GBP/USD chart, the indicator will be confined within the GBP/USD pair so as to not cause any conflict with other charts and timeframes.

    Pips Volatility Alarm. Pips volatility alarm is capable of catching the extreme change on the candle. Hence, if a trader wishes to spot the volatile event on certain currency pairs, this indicator might be the best option for him.

    Stoch RSI. This is an indicator within an indicator that offers a stochastic computation to the relative strength index (RSI) indicator. Stoch RSI is primarily utilized to determine overbought and oversold conditions. It measures an RSI relative to its high/low range over a timeframe selected by the user. It is also an oscillator that computes a value between 0 and 1 and is subsequently plotted as a line.

    Theil Sen Indicator. Its primary objective is to gauge the overall trajectory of a line drawn from the set of data which can be a simple moving average, exponential moving average, close prices, and high/low prices. The estimated line is generated by carrying out regression on the series of values and then calculating the slope of this corresponding regression line. It only takes selecting one type of data a trader wishes to collate. This indicator can support trading multiple currencies.

    Visual Trend Indicator. The visual trend indicator is an indicator whose trend is depicted by the moving average (EMA) direction depending on the trader’s selected time period. It is mostly used for Intraday trading on shorter timeframes.

    Volatility Scanner. Here is another indicator that, by the word itself, looks for volatility in the market. It displays volatility beginning from the actual candle on the right side to older candles left from the actual candle. Volatility scanner can pinpoint uncertainty or potential swing points.