Top 10 standard indicators for MetaTrader 4:
Many traders use technical indicators to forecast where the market may be going. In MetaTrader, you can select up to 30 different technical indicators to appear in the chart. Trading indicators are best tools for technical traders to predict price movements and trends. Whether you’re trading forex, commodities or stocks, it can be helpful to use technical analysis as part of your strategy. Top 10 Indicators for MetaTrader 4.
Most popular of Top 10 standard indicators for MetaTrader 4
Simple Moving Average (SMA):
SMA is most common MA indicator, helps to identify the direction of a trend, without the interference of shorter-term price spikes. The most common way to interpreting the price moving average is to compare its dynamics to the price action. When the instrument price rises above its moving average, a buy signal appears, if the price falls below its moving average, what we have is a sell signal. The most popular simple moving averages include the 10, 20, 50, 100 and 200.
Simple moving averages (50 and 100) on daily chart example:
Exponential moving average indicator (EMA):
EMA is very similar to SMA, difference is the way indicator, The EMA calculations are based on higher weighting to recent price moves compared to the SMA, making data more responsive to new information. The most popular exponential moving averages for short-term trend are 12- and 26-day EMAs , for long-term trend the 50- and 200-day EMAs are most common.
Exponential moving averages (50 and 200) on daily chart example:
Stochastic oscillator is an indicator that compares a specific closing price of an asset to a range of its prices over time – showing momentum and trend strength. The Stochastic Oscillator is displayed as two lines. The main line is called K. The second line, called D, is a Moving Average of K. The K line is usually displayed as a solid line and the D line is usually displayed as a dotted line. It uses a scale of 0 to 100. Best settings for stochastic oscillator are: 14,3,3 and the higher the time frame, the better, but usually, a 4h or a Daily chart is the optimum for day traders and swing traders.
Stochastic oscillator (14,3,3) on 4h chart example:
Moving average convergence divergence (MACD):
MACD is an indicator that detects changes in momentum by comparing two price moving averages. It can help traders identify buy and sell opportunities at support and resistance levels. In order to clearly show buy/sell opportunities, a so-called signal line (9-period indicators` moving average) is plotted on the MACD chart. The MACD proves most effective in wide-swinging trading markets. The standard setting for MACD is the difference between the 12- and 26-period EMAs.
Moving average convergence divergence (12,26,9) on 4h chart example:
Bollinger band is an indicator that provides a range within which the price of an asset typically trades. Standard deviation is a measure of volatility, therefore Bollinger Bands adjust themselves to the market conditions. When the markets become more volatile, the bands widen and they contract during less volatile periods. Bollinger bands are useful for recognising when an asset is trading outside of its usual levels, and are used mostly as a method to predict long-term price movements.
Bollinger bands on daily chart example:
Next 5 of Top 10 standard indicators for MetaTrader 4
Relative strength index indicator (RSI):
Realtive strenght index indicator is mostly used to help traders identify momentum, market conditions and warning signals for dangerous price movements. RSI is a price-following oscillator that ranges between 0 and 100. Level around 70 is considered as overbought, while level around 30 is considered oversold. 14-day RSI is recommended but also 9-day and 25-day setting is popular.
Relative stranght index (14-day) on 4h chart example:
Fibonacci retracement is an indicator that can pinpoint the degree to which a market will move against its current trend. After a significant rise or decline, prices often return to their previous levels correcting an essential part of their initial movement. Prices often face support/resistance at the levels 23.6, 38.2, 50, 61.8 of Fibonacci Retracements or near them in the course of such a reciprocal movement.
Fibonacci retracement on 4h chart example:
Best of Top 10 standard indicators for MetaTrader 4
Ichimoku Cloud technical indicator identifies market trend and support and resistance levels. It also estimates price momentum and provides traders with signals to help them with their decision-making. Ichmoku cloud works best at weekly and daily charts. The default settings of 9-26-52 can be adjusted to suit a 5-day workweek at 8-22-44. Other popular setting include 9-30-60, or 12-24-120 for trnding markets.
Ichimoku cloud on daily chart example:
Standard Deviation is an indicator that helps traders measure the size of price moves. Many traders believe that big price moves follow small price moves, and small price moves follow big price moves. Standard deviation describes the range of price fluctuations relative to simple moving average, compares current price movements to historical price movements.
Standard deviation on daily chart example:
Average directional index (ADX):
Average Directional Index (ADX) technical indicator helps to determine if there is a price trend. It works on a scale of 0 to 100, where a reading of more than 25 is considered a strong trend, and a number below 25 is considered a drift. ADX is based on a moving average of the price range over 14 days, depending on the frequency that traders prefer. ADX never shows how a price trend might develop, it simply indicates the strength of the trend.
Average directional index on 4h chart example: