What Are Indicators For Metatrader 5?
Indicators are very powerful instruments that can be added to the Metatrader 5 Platform to improve your trading.
They are additional software, you can see them as “plugins”, that add to the trading client.
What Type Of Indicators There Are?
There are many types of indicators and for many goals.
You can use indicators for:
- Find trading opportunities
- Receive alerts
- Comply with risk management strategies
- Limit losses
- Make information more accessible and easy to read
- Many More
The type of indicators is limited only by the creativity of the programmers.
Indicators For Technical Analysis
Traders use Indicators For Technical Analysis, to study the price and try to forecast future moves.
The Moving Average and some oscillators are simple examples of this category.
There are also more complex indicators that can perform difficult studies and provide very useful information.
Indicators For Alerts And Notifications
Other Indicators are useful to alert the traders about specific situations.
In fact, Metatrader includes the ability to notify you via email, mobile app and on screen.
However, this feature can be used through coded indicators.
Multi Time Frame Indicators
Multi Time Frame Indicators can group information distributed on different Time Frames and show this in a single place.
These indicators are very useful because they provide a wider “picture” of the situation.
Checking an indicator in a single time frame means ignoring something that is happening on a larger scale, like a major trend.
Multi Time Frame Indicators provide a better visualisation allowing you to get a better understanding of the situation.
Risk Management Indicators
You can use some indicators for Risk Management, for example to monitor the balance, profits and losses.
Risk Management is one of the most important aspects of trading.
Indicators can assist you with the assessment of risk, sizing of the positions, monitor of profit and loss and much more.
Indicators VS Expert Advisors
Although they can be similar you don’t have to confuse Indicators with Expert Advisors though.
Expert Advisors, also known as EA, have the ability to execute trade operations while Indicators cannot.
In other words, EAs can submit, modify and cancel orders, while Indicators cannot do any change related to orders
You can add indicators to your Metatrader 5 to expand the features of the platform.
Indicators can be very simple and also very complex, depending on their goal and ease of use.