Top 4 MetaTrader4 Indicators Every Trader Should Know
A look at the most prominent indicators utilized by traders worldwide.
When it comes to online trading, there is no better platform than MT4. The award- winning trading software is a favorite amongst professional and amateur traders alike. This is due to many features such as 2000+ free indicators however; in this article we will take a closer look at four of these fundamental indicators, often incorporated into majority of traders strategies:
What are Indicators?
Indicators form an intrinsic part of many traders’ routines. They provide insight and signals that traders can utilize to calculate their ideal entry and exit prices. Indicators provide information to the trader on trends, trading volumes and market changes to name a few, that are imperative to their intended strategic outcomes.
Moving Averages (MA):
This indicator is useless because it affords traders insight into the macro performance of the markets as a whole. The Moving Average is represented as a single line across the chart, weaving between the buy and sell candles. When the MA is below the trading price, it suggests to investors that the market is bullish and buyers are controlling the price movements. The opposite can then be deduced; if the MA is above the trading price, it is likely a bear market and being controlled by sellers.
This then gives traders more data with which to deduce their strategies and entry points. If you are trading with a CFD broker like CedarFX, you can go both short and long on trades, allowing for potential gains in rising or falling markets.
MACD:
The MACD stands for Moving Average Convergence and Divergence and is possibly the most popular indicator, especially amongst forex traders. This indicator consists of both an exponential moving average, as well as a histogram. The intention of this indicator is to calculate the point of divergence from the price. A regular divergence of price and MACD suggest a reversal in the market, while the hidden divergence suggests a possible market continuation around the current price and trajectory.
RSI:
The Relative Strength Indicator or RSI works on a range from 0 to 100. The purpose of this indicator is to signal a potential price reversal. Typically, when there is a rising trend, if the RSI measures 70 or above, this can be an indication of a bearish market reversal. Thus, if the levels during a descending trend reach below 30, this can indicate a bullish market reversal.
Bollinger Bands:
John Bollinger is the mastermind behind this indicator. Here we see the use of moving averages once again. This tool presents itself as a single moving average line with two deviations above and below the standard MA line. This is considered one of the easier indicators to read and often provides reliable entry and exit prices for traders.
The two lines above and below the MA operate as a kind of dynamic support and resistance signal. When the market diverges from these either significantly up or down, it could indicate a potentially good entry point for a trade.
These are just a handful of highly-effective indicators that make MT4 the renowned platform it is today. All that is left, is for traders to sign up with a broker and open a live trading account. Our choice is always CedarFX.
Why Sign Up With CedarFX?
You can invest in over 150+ Forex pairs, Commodities, Cryptocurrencies, Indices, Stocks and Metals 24 hours a day, 5 days a week with CedarFX. They also offer round-the-clock Cryptocurrency trading so you may invest and manage your trades 24 hours a day, 7 days a week. Combined with the ease of device compatibility, you
can conveniently trade from anywhere with an internet connection.
What Leverage does CedarFX offer on All Asset Classes?
Looking to make the most out of the least? Well, CedarFX offers some of the most competitive leverage ratios on the market. These are their unbeatable options:
Crypto – 1:100
Energy – 1:100
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Indices – 1:200
Metals – 1:500
Stocks – 1:20
Why We Choose CedarFX – The World’s First Green Broker:
CedarFX is a robust and reliable broker with a conscience and a wide variety of assets to invest in. Currently they offer two excellent account options; An Eco Account and a 0% Commission Account.
0% Commission:
The first type of account is the Zero Commission Account. Traders are able to register and deposit capital without any commission charged before, during, or after trading. This means your full deposited funds are available to be traded in their entirety with no hidden fees associated anywhere. They offer same-day Bitcoin withdrawals for this account as well.
Eco Account:
The Eco Account from CedarFX is a commission-based account with an environmentally friendly feature, aimed at combatting global warming and reducing the carbon footprint of humans. The commission is charged on a pro-rata basis according to the physical trades you place. This is at a rate of $1.00 per lot traded.
For every $1 commission paid by clients, the amount is matched and used to plant trees. These funds are sent to the Eden Reforestation Project, who are responsible for planting millions of trees around the world in an attempt to neutralize human’s carbon footprint.
CedarFX Support:
This broker’s customer support is highly impressive and efficient. Contact them via Live chat, email or call-back request 24 hours a day, 7 days a week. Their specialty trading and finance departments can handle even the most technical queries and
provide detailed feedback and assistance.
