This article will give an excellent overview of the best free forex indicators for mt4 what you should regard in 2022. I will address some essential questions like
- What are the best free forex indicators for mt4
- Which forex indicator is most profitable
- How to get free forex signals using mt4 indicators
- How to add custom forex indicators to mt4
I will reveal the secret why you should trade with MetaTrader 4 and not with mt5 or MetaTrader 5. We all know that the foreign exchange market is the largest and most liquid market in the world. This market is constantly changing, coping with the modern era. If you want to profit in the forex market, you must know how to trade properly. You have to analyze future market movements.If you can do this then you don’t need to search any forex robots (Forex EAs) or Mt4 expert advisors .For predicting market behavior, you need to master different types of analysis like technical analysis, fundamental analysis, and sentimental analysis.
Among these three types of analysis, technical analysis is the most powerful and popular type of analysis. For mastering forex technical analysis, you have to take help from various types of indicators, more precisely, free forex indicators for mt4.
What are technical indicators all about
Basically, A technical indicator is nothing but a kind of chart analysis tool. This tool is a metric. The value of this metric is found from the past price activities. Smart fx traders use these indicators to predict the price’s future movements. Some traders analyze past market patterns to detect the future direction of price. Various types of technical indicators show market trend direction and market volatilities. In this masterpiece, I will reveal the top tips of how you can use free forex indicators for mt4 like rsi, Bollinger bands, moving averages, and so on and maximize your profit.
Suppose you are a short-term active forex trader or a day trader, then technical analysis based on technical indicators best suits you. There are many fundamental elements like revenue, earnings, profit margins, and so on. But ironically, technical indicators don’t analyze these fundamental events, so if you are long-term forex or stock trader and plan to stick only with technical analysis tools, you are making a big mistake. If you are a fundamental trader, then technical indicators are irrelevant for you. But if you use technical indicators as a final decision-making tool and combine technical tools with your fundamental knowledge, then you can take the best results from technical indicators.you can use technical indicators to find out the exact trends and apply these indicators if you want to enter a trade at the perfect moment. Remember, fundamental events are the core factors that cause movement in the market.
Here is the list of free forex indicators for mt4
Moving average indicator
Moving average shortly, MA is the most used tool in the mt4 terminal. This trend indicator helps to average the price of any particular pair over a time period. If you use this indicator, then you can get a clear direction of the trend. If you get confused about which direction the price is going, then just set a moving average, and it will tell you whether the price is going to up or down.
Moving average shortly, MA measures the average value of any particular pair’s price movements. There are many moving averages like 20,50, 100, and so on based on the period of time .many successful traders find it quite difficult to take the right action whether we should buy or sell any pair .moving averages help us to filter the trade setup and indicate whether the market prices are going to up or down. There are many day traders and swing traders who trade based on the breakout. If you are also a breakout trader and want to trade only when a breakout happens, then this indicator is the right choice for you .Best moving average for 1 hour chart is 50 moving average.When price breaks out 50 moving average in upside with a strong bullish candle that means there is much bulls power, then you can buy that pair and when price breaks downside with a strong bearish candle then you can sell that pair.
Many traders and scalpers trade based on moving average crossover.Best moving average for scalping is 21 moving average. If 21 periods moving cross 50 periods moving average, then you can place your trade.
There are four types of moving average.
- Simple moving average
- Exponential moving average
- Smoothed moving average
- Linear weighted moving average
Many compare smoothed moving average vs simple moving average.But the most popular are simple and exponential moving average,and best moving average setting for h1 is 50.
Ichimoku Kinko Hyo indicator
Although This Japanese originated indicator looks complicated, it is straightforward to use.This trend assistant indicator indicates current trends. It also shows support levels from you can buy and resistance levels from selling any currency pair. If you are a reversal trader, this indicator can also help you as it displays the market reversal levels.The best timeframe for trading with Kinko Hyo is daily time frame.Remember not only entering but also proper exit is essential here when you use this indicator.Many newbies search ichimoku kinko hyo indicator free download.But the fun fact is that you won’t need to download it, as it is available in your mt4 or mt5 charting platform by default. And ichimoku kinko hyo success rate is very high more than 80%.
There is an indicator in mt4, which will not show you whether the price is about to go upside or downside. Rather it only indicates you about the strength of the trend. If there is no strong trend, then it will indicate you that the price is in ranging mode.many of us want to trade only in a trending market to get many pips in a short time, but we cant find out the exact weapon which can help us to stay away from tanging market. If you are also a day trader and wish to ride on a volatile market, then use this indicator, and when this indicator shows you the market is in ranging mode, then stay away from the chaos of the market. But be careful when you use this indicator as this indicator won’t give you trading signal or point out you, whether you should buy or sell any pair. For taking buy and sell decisions, you need to take the help of other indicators, which I will discuss later.
The full form of CCI indicator is the commodity channel index indicator.There are many forex oscillators and CCI is one of them. The CCI indicator is different than many free forex indicators for mt4. . This indicator’s base point is 0 .overbought levels start from +100, and when CCI comes below, +100 traders try to find a short set up. Oversold levels start from -100, and when CCI goes above -100, profitable trader tries to find buy set up.
If you ask which indicator is the most popular and most used, I would reply rsi oscillator. The relative strength indicator, rsi, indicates how momentum in price value is developing. Suppose if the price goes higher and higher, rsi will move higher also and if the price drops lower, then rsi will also drop lower. The question is, how you can use this idea in your trading instruments. The range of rsi is between 0 to 100. the overbought territory is above 70, and oversold territory is below 30. We will try to short any pair when value 70 is crossed from above and long when the value 30 is crossed from below .many new retail traders ask Where can I get free forex signals? They don’t know rsi can give very accurate buy and sell signals. But all you need to do is trade with the current market conditions.
If you are a scalper then you would love to trade on 5 minutes chart. And best rsi settings for 5 min chart is 20,80.
The MACD indicator is basically the combination of different types of EMAs. The moving average convergence divergence shortly MACD is the difference between the 12 EMA and 26 Ema. This difference, nine ema, is shown by another line called the signal line.
As a trader, you should find a buy setup when MACD crosses above the signal line, and you should find a short setup when the MACD line crosses below the signal line.
Another popular concept of intraday trading stratgey based on MACD is the divergence between the price value and MACD. If price and MACD indicator moves different direction, the divergence happens. If you are a breakout swing trader, then divergence trading if best for you . and for divergent MACD is the most popular one.
If you are a scalper then go for any scalping strategy based on macd like 1 min macd scalping strategy.
The stochastics indicator is a potent indicator in forex trading .this is a momentum indicator .stochasctic indicator produces overbought and oversold signals. This popular best forex indicator was first developed in 1950.
The range of stochastic indicator is between 0 to 100. Occasionally over 80 are considered in the overbought area, and below 20 is considered as oversold area. If you wish to place sell trade when stochastics remain in an overbought zone and buy trade when stochastics in an oversold zone, then you are wrong. Because a powerful trend can remain valid in overbought and oversold conditions for an extended period of time, you should rather use a stochastic oscillator to focus on upcoming trend shifts.
Stochastic generally consists of 2 lines. One reflects the oscillator’s actual value, and another shows a simple moving average for a particular period of time. When you see an intersection of these two lines, you can guess that a strong reversal is about to happen.
Another good way to use this indicator is to compare it with price means divergent trading. The divergence between price value and the stochastic indicator is an important reversal signal. i am giving you an example here. Suppose there is a strong bearish trend in the chart .and this bearish trend creates a lower low continuously .but at the same time, if the stochastics indicator points a higher low, this will indicate that sellers are tired .sell positions exhausted in the market. So you can take a buy position as a new bullish trend is about to happen.
Forex Volatility indicators
The volatility indicator measures how large the up move and down move are. High volatility is when a currency’s price fluctuates very much, and the price goes up or down wildly and rapidly. Similarly, if the price doesn’t move so much and there is no fluctuation in the market, that is a low volatile market. We don’t like the ranging market as in the ranging market; there lie fewer opportunities to trade. But we can’t understand whether the market is in ranging mode or not, so if we use this indicator, we can filter our trade picking decision very clearly.
The ATR or average true range indicator, shows the average distance between the high and low prices over the last 14 candles. The lower the ATR gets, the less volatile the market is, and the higher the ATR gets, the more volatile the market is. So basically, this is also volatility measuring indicator.
Donchain channels are lines above and below the recent price. This line shows high and low prices over an extended period of time. These lines act as support and resistance levels if the price comes near these lines.
Bollinger Bands indicator
Bollinger bands are one of the most powerful popular, and used indicators worldwide, and John Bollinger first developed them. There are many trend reversal free forex indicators for mt4. But advanced traders use bollinger bands.
Bollinger band prints three lines. These three lines are three bands. The middle band is a 20-period simple moving average. Whether the upper band and lower band are two standards deviations above and below the 20 periods moving average .so this actually means that the more volatile the pair is, the wider the two bands will become.
Bollinger bands buy sell signals are given by many signal providers but as this indicator is available free on mt4 so don’t buy any service. Instead, build your own bollinger bands settings for scalping or day trading. The best bollinger bands settings for scalping is 20,2,2.
If you are a swing trader then you can use bollinger bands support and resistance bands as your buying and selling zones.
Pivot point indicator
If you want to know which indicator is used by big banks and hedge funds, then the answer is although big boys don’t rely solely on any indicator, sometimes they take a look at pivot values to measure how far or near the price is from the mean value. This pivot point indicator is used in all markets including commodities forex and equities. The pivot point indicator is created based on the previous period’s high low and close price. The levels of pivot points indicators are potential support and resistance levels. sometimes These levels are tough to breakthrough.
Pivot point indicator for mt4 is a powerful tool.Dont get disappointed if you don’t have this custom indicator.Pivot point indicator for mt4 free download is a gift for you from parkingpips.
How do you add custom mt4 indicators?
Installing a custom indicator in mt4 is a straightforward process. I am giving a step-by-step procedure. By following these steps, you can install any custom indicator on your favorite mt4 platform.
Firstly, copy the indicator.
Secondly, open the data folder in mt4.
Thirdly, open the mql4 folder.
Fourthly, open the indicator files.
Fifthly, paste here your copied custom indicator.
Sixthly, restart the mt4 platform.
Most forex traders use indicators while making trading decisions. While you are a day trader position trader or swing trader, if you apply indicators, then it would be easy for you to filter out a good one from bad trades. free forex indicators for mt4. are not always bad. rather sometimes some powerful indicators show vital information that may benefit you. Although there is a variety of platforms like meta trader 4, meta trader 5, c platform, and so on but mt4 platform is best for its simple and user-friendly features. even if you trade based on custom indicators then meta trader 4 is the best option for you as you don’t need to spare a long time learning the installation process in this platform. Everything is simple here on this platform
I discuss 15 technical indicators above. Each of the indicators above can help you advance your analysis knowledge . by understanding the basics of technical tools, you can better understand the market. But one thing remembers don’t rely only on the indicator. If your trading system solely depends on indicators without understanding the market context and conditions and you blindly follow the buy and sell signal given by the indicator, then you must lose in the trading journey. if you complicate your system by applying too many indicators, then you will get too much information and indications, which results in “paralysis by analysis “.So learn the best use of free forex indicators for mt4 and keep your trading system and strategy simple.
Professional trader’s opinion about forex trading
” A simple strategy allows for quick reactions and less stress”Tyler Yell
” Forex indicators are mathematical calculations”Jack Moore
” The best forex indicators are a key component to predicting market”Samantha Forlow
” A trader should rely on an overbought/oversold indicator “Troy segal
” The moving average is one of the simplest and one of the best indicators for Forex “Rayner Teo