Metatrader 4 indicators are designed to make your life as a Forex trader a lot easier. If you’ve never used the platform before, setting up these Forex indicators may seem like a chore. In reality, it’s about as easy as finding a spineless liar in Congress.

What Are These Indicators?

If you’re a newbie (and many people who visit this site are. which is totally cool by the way) then you may not really understand what the indicators are or how they help you trade the market. An indicator is a tool that you can put on a trading chart to help you make trading decisions. For instance, you can see if a currency pair is oversold or undersold, which you can’t always see just by looking at a chart.

These indicators are commonly used in technical analysis.

This is a type of analysis that involves looking at Forex charts and trading based on patterns in the price data. If you can effectively identify trading patterns, you can figure out when to trade and you can make money. Booyah!

Installing the Indicators

If you’ve already got Metatrader 4 on your computer, putting the indicators on your chart is no big deal. Open up a chart by right-clicking on one of the currency pairs in the list at the top left of the page. Then click on the Insert tab at the top of the screen. At that point, scroll down to Indicators and then you can select the indicator that you want to insert.

Which Indicators to Use

There aren’t really any indicators that are considered the best when trading the Forex market. Everyone has their own indicators that they like. Try out all of the indicators while you’re messing around with the platform and see what they all do. Some of my personal favorites are Bollinger bands, MACD and the parabolic SAR. The Bollinger bands are cool because they give you a dynamic form of support and resistance. The price tends to bounce back and forth off of the upper and lower lines. If price breaks through one of the lines, you can bet that it’s going to go for a ride before it goes back in the other direction. MACD is handy because it helps you identify when a trend is starting. When one line crosses over the other, it tells you that the trend is forming.

Parabolic SAR is good to use when you want to know when the trend is ending or changing. This indicator creates a series of dots on the screen above or below the price line. If the dots are below, the trend is up. If they’re above, the trend is down. When the dots change, this is a signal to close out a trade.

Putting it All Together

Every trading system that you use will have its own indicators that it likes to rely on. Most systems that you buy use custom indicators that could be variations of freely available indicators. Before you trade with any indicators for real, make sure that you’ve tested it out on a demo Forex account first. This will go a long way towards helping you avoid losing your shirt. If you’ve enjoyed this article on Metatrader 4 indicators, feel free to share it with your friends through Twitter or Facebook below. Thanks for dropping by FTR and have a good one!