How To Use MetaTrader 4 - MT4
The decentralized nature of the Forex market has imposed a trading pattern that may be somewhat different from other financial markets. During this topic, we will talk about the Forex trading platform, which is the window through which the Forex trader learns about the prices of currency pairs, follows them, analyzes them, and also executes through them. The Forex trading platform or program that we will talk about now is MetaTrader 4, which is the most famous and widely used platform among Forex traders, and is provided by almost all Forex brokers around the world.
Table of Contents
- Features of MetaTrader 4
- Disadvantages of MetaTrader 4
- How to Download and Install MetaTrader 4
- Explanation of MetaTrader 4 Interface
- Explanation of Drawing and Technical Analysis Tools
- How to Deal with Currency Pair Data and Display Spread
- Viewing Technical Indicators and How to Add Them
- Explanation of Trading Data and Auxiliary Lists
- How to Control and Change Drawing and Analysis Templates
- How to Trade and Open Forex Orders on MetaTrader 4
- Using MetaTrader 4 on Mobile Devices
- FAQs about MetaTrader 4
Historical Overview of MetaTrader 4
In 2002, a group of developers from MetaQuotes Software launched MetaTrader 4 (MT4), a forex trading platform that initially had a simple version compared to the current version. Although it didn’t immediately gain widespread popularity among brokerage platforms, by 2005, MT4 started to gain traction, replacing other trading platforms for forex traders. Over time, the platform expanded its usage beyond just forex, to include CFDs, futures, commodities like gold, silver, oil, and cryptocurrencies such as Bitcoin, Ripple, and Ethereum. With the rise of smartphones, the platform became available for both Android and iOS, further increasing its popularity. Despite MetaQuotes ceasing to support MT4 in favor of MetaTrader 5 (MT5), traders continue to prefer MT4, especially since it supports MQL4, a programming language they rely on for automated trading, which is not compatible with MQL5 in MT5.
Features of MetaTrader 4
MetaTrader 4 boasts many features that helped it become popular among traders. Some of its most important features are:
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User-Friendly Interface: MT4 has an intuitive interface that doesn’t require complex training for beginners. It allows for easy trade execution, price tracking, and chart modifications, offering a high level of customization.
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Charting Tools: Unlike earlier platforms, MT4 provides a comprehensive charting interface with customizable graphical tools, making it easier for traders to analyze market trends and execute trades efficiently.
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Automated Trading Solutions: MT4 supports automated trading, where traders can use scripts or Expert Advisors (EAs) to execute trades automatically based on predefined conditions.
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Notification and Alert Systems: MT4 allows users to set customizable alerts and notifications to track market conditions even when away from their computer.
Disadvantages of MetaTrader 4
While MT4 has several advantages, it also has some limitations:
- Limited Historical Data: The data available for backtesting strategies may not be as extensive as some traders need.
- Execution Speed: Although adequate, MT4's execution speed may not be sufficient for high-frequency or intensive trading.
- Web Platform Limitations: The web version of MT4 lacks automated trading capabilities.
- Limited Timeframes for Charts: MT4 does not allow for fully customizable timeframes, limiting chart flexibility.
How to Download and Install MetaTrader 4
To get started with MetaTrader 4, you can download the platform from your forex broker’s website. Once downloaded, follow these steps:
- Click "Next" in the welcome window to begin the installation.
- Agree to the software terms and click "Next."
- Allow the installation to complete, then click "Finish."
- Open the program and enter your account login details to start trading.
Explanation of MetaTrader 4 Interface
The interface of MetaTrader 4 is composed of several key components:
- Toolbar for Drawing and Technical Analysis: Tools for charting, trend lines, and adding indicators are located here.
- Currency Pair Data: You can view and trade currency pairs through this section.
- Indicator Lists: Shows all available technical indicators.
- Chart Display: The area where price charts for the selected instruments are displayed.
Explanation of Drawing and Technical Analysis Tools
MT4 offers a full suite of charting tools that can be used for analysis:
- Adding a Chart: You can insert different types of charts like bar, candlestick, or line charts.
- Customizing Profiles: Easily add, modify, or delete trading profiles.
- Technical Indicators: You can open and view various technical indicators to aid in your market analysis.
How to Deal with Currency Pair Data and Display Spread
The data for each currency pair, including bid and ask prices, is available for quick reference. To display the spread, right-click on the currency pair in the "Market Watch" window and select "Spread."
Viewing Technical Indicators and How to Add Them
To add a technical indicator:
- Click the "+" sign next to "Indicators" to access the full list.
- From there, you can choose which indicators to add to your chart.
Explanation of Trading Data and Auxiliary Lists
MT4 provides several useful lists, including:
- Trade: Displays open trades and margin information.
- Exposure: Shows the risk exposure of each trade.
- Account History: Lists all completed trades.
- News: Displays news related to the markets.
- Alerts: Allows setting alerts for market movements.
- Mailbox: Shows messages from your broker.
How to Control and Change Drawing and Analysis Templates
To change templates in MT4:
- Right-click on the chart and select "Properties."
- You can modify the background color, chart type, and indicators from this menu.
How to Trade and Open Forex Orders on MetaTrader 4
To open a trade in MT4:
- Right-click on a currency pair in the "Market Watch" window and select "Chart Window."
- Choose "New Order" to place a trade.
- Complete the order details, including stop loss, take profit, and order type, then click "Place."
Using MetaTrader 4 on Mobile Devices
MetaTrader 4 is available for both Android and iOS, allowing you to trade on the go. You can download the app from the Google Play Store or Apple App Store.
Conclusion
MetaTrader 4 (MT4) is a powerful and user-friendly trading platform that has remained popular among traders for its simplicity and advanced features, including charting tools, automated trading, and customizable alerts. Despite the availability of newer platforms like MetaTrader 5, MT4 continues to be favored by many due to its ease of use and extensive support for forex trading. Whether you're a beginner or an experienced trader, MT4 offers a comprehensive solution to manage your trades efficiently.
MetaTrader 4 (MT4) is a platform used for online trading, primarily in forex, CFDs, and commodities.
Yes, MT4 is available as an app for both Android and iOS devices.
Expert Advisors (EAs) are automated trading scripts that allow trades to be executed automatically based on predefined conditions.
To add an indicator, click on the "Indicators" tab, select the desired indicator, and it will be added to your chart.