Traders who are using the indicators in their market analysis will definitely need an indicator for MT5 when switching to another trading platform.
Aside from the regular set of trend indicators, oscillators and Bill Williams tools, MetaTrader 5 offers additional expert advisors you can couple with your trading strategy to get more precise entry signals.
In today’s article, we are going to cover some of the popular and effective indicators.
The best indicators for MT5 include the BB MACD tool. A well-known trend advisor called the Bollinger Bands and the MACD oscillator laid the foundation for BB MACD. When added onto the chart, the BB MACD looks like green or purple dots that change color over time. This points to the emergence of a trading signal in the market.
By default, two lines of the indicator (red and blue) form the corridor width. Using them, you can assess the strength of a trading signal.
The BB MACD also has the oscillator’s line which acts as the central band in the Bollinger indicator. It is represented by a dotted line. The size of a simple deviation is estimated from it.
The standard settings which you can see in the setup window when dragging the indicator onto the chart are enough to trade with it.
If you are an intraday trader, you should give MT4 indicators for scalping a whirl. One of them is called Beginner. It was specifically designed for MetaTrader 5 and is available online.
Essentially, this indicator displays local price peaks and troughs in the chart:
The indicator has several components. It evaluates AllBars i.e. the number of bars/candlesticks prior to generating a signal of a potential market entry point. The Otstup filter is intended to cut off a specified percentage of the study sample.
Per is a period on which the maxima and the minima are calculated in the given moment. The default value which is 9 can be increased or decreased by entering the number of candlesticks, after which the signal point will emerge.
Aside from the scalping signals, traders use the Beginner indicator to identify support and resistance levels.
In order to trade support and resistance, you can download the level indicator for MT5. The “Support and Resistance” indicator is among the popular tools in this category. When added onto the chart, the indicator shows levels as red and blue rhombuses.
The algorithm of this indicator implies the use of Bill Williams' fractals to build the levels. The default settings only are used here. That being said, the fact that levels are formed at the prices highs and troughs, and not at the opening and closing prices, which are believed to be more reliable for analysis, can pose a problem.
However, we can utilize this shortcoming in order to determine where to place the stop loss and take profit (which will be behind the extrema) based on the indicator levels. To identify the entry point, you can couple “Support and Resistance” indicator with technical analysis tools or some other indicator.
When discussing the best MT5 indicators, we shouldn’t forget about another handy tool called CCI Arrow indicator which you can download online. Essentially, it shows you where the CCI cross with the zero occurs (marking it with the red or blue arrow). This, in turn, helps you decide whether to open a short or long position.
To do that, a period of 14 is included in the Expert Advisor parameters. That being said, it can be changed so that it works for your trading strategy. Keep in mind that the higher the indicator value, the greater the odds that you will get a false signal.
The CCI Arrow is suitable for tracking a direct signal to enter a position; however, make sure to factor in the overall trend direction. Green arrows point to long (buy) trades but they shouldn't be overlooked in case of a downtrend. When there is an uptrend, a green arrow gives a signal to go long, while the emergence of a red arrow tells you where to close a long position.
Those who have decided to switch from MetaTrader 4 to MetaTrader 5 will naturally wonder whether the new trading terminal has a horizontal volume indicator. Real Market Volume is one of the best options for MetaTrader 4. The market data for this indicator is received directly from the CME sources.
There are no free MetaTrader 5 indicators that show horizontal volumes but there are certain paid Expert Advisors which you can download and install. These include the VolumesHist indicator designed to demonstrate the volume history which can be used as reference points for strong support and resistance levels.
The standard version of MetaTrader 5 has plenty of simple standard indicators to choose from. However, if the one you need is not available, you can easily download and install it. Here’s how it is done.
1. Unpack the archive with the indicator you’ve downloaded online.
2. Find the EX5 file in the folder and copy it to the terminal database. If there is a MQ5 file, copy it there as well.
3. Next, open the data catalog in MetaTrader 5.
4. Go to the “MQL5” and “Indicators” folder and move the indicator files there.
5. Once this is done, go to the "Expert Advisors" tab, enable the automated trading and allow DLL imports by checking relevant boxes.
6. Last but not least, restart the terminal. The indicator can now be found in the "Indicators" tab, the "Custom" subsection.
You can download MetaTrader 5 terminal in the personal account on the broker’s website.