The ChoosaBroker Trading Academy
14.3. Adding Technical Indicators on MT4
For traders and investors relying on technical analysis to form their market bias, indicators are an indispensable tool. MetaTrader 4 has up to 30 inbuilt technical indicators, enabling market participants to implement even the most complex of strategies. The best forex brokers provide further details in this respect.
MetaTrader 4 Indicators
MT4 indicators are categorized under the following 4 heads:
- Average Directional Movement Index – Used to determine when price is trending strongly.
- Bollinger Bands – Volatility bands placed above and below a moving average.
- Envelopes – Typically overlaid on a price chart to identify extreme overbought and oversold conditions.
- Ichimoku Kinko Hyo – Defines market support and resistance and determines trend direction.
- Moving Average – Displays the average price of a security over a specific period of time.
- Parabolic SAR – Price and time-based trading system developed by J. Welles Wilder.
- Standard Deviation – Measures the amount of variability around an average.
- Average True Range – Provides an indication of the degree of price volatility.
- Bears Power – Developed by Alexander Elder, it estimates the power of sellers.
- Bulls Power – Developed by Alexander Elder, it estimates the power of buyers.
- Commodity Channel Index – Versatile indicator, used to spot a new trend or warn of extreme market conditions.
- DeMarker – Measures the demand for an underlying asset.
- Force Index – Assess the “force” behind price moves and identifies potential trend changes.
- MACD – A widely popular trend-following momentum indicator.
- Momentum – Measures the strength of a price move.
- Moving Average of Oscillators – Depicts the difference between an oscillator and its moving average.
- Relative Strength Index – Developed by Welles Wilder, it measures the speed and change of price movements.
- Relative Vigor Index – Calculates the likelihood of a recent price move continuing.
- Stochastic Oscillator – A momentum indicator that compares a security’s closing price to its range over a certain period of time.
- Williams’ Percent Range – Developed by Larry Williams, %R is the inverse of the Stochastic Oscillator.
- Accumulation/Distribution – Attempts to gauge a market’s demand-supply scenario.
Money Flow Index – Uses both price and volume data to measure an underlying asset’s buying and selling pressure.
On Balance Volume – Another popular indicator to measure buying and selling pressure.
BILL WILLIAMS INDICATORS
Accelerator Oscillator – Signals acceleration or deceleration in the current market driving force.
- Alligator – Consists of three lines overlaid on price that was created to help confirm the presence of a trend and its direction.
- Awesome Oscillator – Tries to gauge whether bullish or bearish forces are currently driving the market.
- Fractals – Indicators overlaid on candlestick charts that locate potential market turning points.
- Gator Oscillator – Developed by Bill Williams, it is an auxiliary oscillator to the Alligator.
- Market Facilitation Index – Tracks the willingness of a market to move price.
How to Apply MT4 Indicators to Chart
- First, we click on the “Insert” menu.
Click OK once the settings have been tweaked to your satisfaction. The indicator is now good to go!