MT4 TRADING APP USER GUIDE
MetaTrader 4 (MT4) is a trading platform traders use to operate in financial markets, particularly among Forex traders.
The MetaTrader 4 platform was developed by MetaQuotes Software and was launched in 2005. Since then, it has evolved and improved, becoming an essential tool for traders looking to capitalize on market opportunities.
The significance of MetaTrader 4 for traders lies in its ability to provide an easy-to-use and customizable trading platform, advanced technical analysis tools and a wide variety of indicators. Additionally, MetaTrader 4 allows for the automation of trading strategies using Expert Advisors (EAs).
The purpose of this article is to provide a comprehensive guide on how to use MetaTrader 4.
Before Starting to Use MT4
This article will cover everything you need to know about downloading and installing the platform, how to use the MetaTrader 4 interface, perform technical analysis, and use different trading strategies. We hope this article helps you make the most out of MetaTrader 4 and improve your trading in the financial markets.
Using the MetaTrader 4 Interface
The MetaTrader 4 interface may initially seem overwhelming, but it will become essential for your trading operations once you understand the different sections and tools available.
Customizing the MT4 Interface According to Your Needs
The customization capability is one of the reasons why MT4 is one of the most popular trading platforms among traders.
Below, we show you how to customize the MetaTrader 4 interface to suit your trading needs.
Customizing the toolbar
The MT4 toolbar is located at the platform's top and allows quick access to the most commonly used tools. You can customize the toolbar by right-clicking anywhere on the toolbar and selecting "Customize." From here, you can add or remove buttons and change their order.
Customizing MT4 Tabs
The different tabs in MT4 can be customized according to your needs. For example, you can resize the Market Watch window to view more financial instruments at once or adjust the size of the charts to see more details. You can also customize the layout of the windows by right-clicking anywhere on the platform and selecting "Customize."
Customizing charts
MT4 charts are highly customizable and allow you to add indicators and technical analysis tools. You can customize the appearance of charts by right-clicking anywhere on the chart and selecting "Properties." You can change the background colour and price line from here and add indicators and technical analysis tools.
Customizing the platform's appearance
The appearance of the MT4 platform can also be customized according to your preferences. You can change the background colour and font size by clicking "Options" in the "Tools" tab.
Market Watch tab
The Market Watch tab lets you view the available financial instruments to trade on MetaTrader 4. You can add financial instruments to this window by right-clicking anywhere in the window and selecting "Symbols."
You can customize the Market Watch window according to your needs by right-clicking and selecting "Customize."
Quotes tab
The Quotes tab displays the current price of the selected financial instrument in the Market Watch window. You can open a position by right-clicking on the financial instrument and selecting "New Order." You can also modify existing orders by right-clicking on the order and selecting "Modify or Delete Order."
Terminal tab
The Terminal tab is where you can view the status of your positions and orders. You can view your transaction history by clicking on the "Account History" tab and your open positions by clicking on the "Trade" tab. You can also view your account's used and available margin in the "Account" tab.
Charts tab
The Charts tab displays the chart of the selected financial instrument in the Market Watch window. You can customize the chart according to your needs, add indicators and technical analysis tools, and open positions directly from the chart by right-clicking and selecting "New Order."
It is important to note that the MT4 interface is highly customizable. You can add and remove sections according to your needs by right-clicking anywhere on the platform and selecting "Customize." You can also customize the appearance of the platform and charts by clicking on "Options" in the "Tools" tab.
How to Open and Close Trades in MT4
Open the Market Watch window by clicking on the corresponding button on the toolbar or in the "Window" tab at the platform's top.
Select the financial instrument you want to trade and right-click on it.
Select "New Order" to open the order window.
Click "Buy" or "Sell," depending on the direction you want to take. This completes the opening of the trade.
To close an open position, right-click on the position in the "Terminal" window and select "Close Order".
How to Modify Orders in MT4
In the "Terminal" window, select the position you want to modify and right-click on it.
Select "Modify or Delete Order."
In the window that appears, modify the parameters you want to change, such as the Stop Loss or Take Profit level, trade volume, or the distance in pips from the current price.
Click "Modify" to save the changes.
How to View Transaction History in MT4
In the "Terminal" window, select the "Account History" tab.
Right-click anywhere in the window and select "Customize."
In the window, you can customize the search criteria to find the transactions you want to view, such as the financial instrument, period, and trade type.
Once you have customized the search criteria, click "OK" to view the corresponding transaction history.
Technical Analysis in MT4
MT4 contains various technical analysis tools that can help you better understand the behaviour of financial markets. Some of the most commonly used tools are:
Charts are graphical tools that draw a line between two or more points on a price chart. These lines help identify trend patterns and can be used as support or resistance levels.
Technical Indicators: These are mathematical formulas applied to prices and volumes of financial instruments to display patterns and trends. MT4 offers various indicators, from basic ones like moving averages and RSI to more complex ones like MACD or Ichimoku.
Oscillators: These indicators move around a central level, such as a horizontal line, and help detect overbought and oversold conditions. Some popular oscillators in MetaTrader 4 are RSI, Stochastic, and CCI.
Fibonacci: This is a tool used to identify potential retracement and extension levels in a trend. Fibonacci levels are based on a series of mathematical numbers used to calculate potential entry and exit points in the market.
Below, we detail each of these tools.
Charts in MetaTrader 4
Charts are an essential tool in the technical analysis of financial markets, and MT4 offers a wide range of options to visualize price data. The main types of charts available in MetaTrader 4 are:
Chart Types
MT4 offers a variety of chart types for traders to analyze financial markets. Here are some of the most common chart types available in MT4:
Bar Charts: Bar charts are a common way to visualize the historical prices of financial assets. Each bar represents a specific period and shows the opening, closing, high and low prices.
Candlestick Charts: Candlestick charts are also standard in MT4. Each candlestick represents a specific period and shows the opening, closing, and high and low prices. The shape and colour of the candlestick can provide valuable information about the market direction.
Line Charts: Line charts are commonly used to show the trend of prices over time. Each point on the chart represents the closing price for a specific period, and the points are connected to form a line that shows the overall market direction.
Point and Figure Charts: Point and figure charts are a less common way to visualize historical prices. Only significant price changes are shown in this chart type, disregarding less essential price movements.
Each chart type has advantages and disadvantages, and traders can choose the one that best suits their needs and preferences.
Customizing Charts in MT4
MT4 allows you to customize charts according to the trader's preferences. Some customization options include:
Periodicity: Traders can choose the periodicity of the charts, from ticks to periods of several years.
Colour and style of candles or bars: Traders can choose the colour and style used in the charts.
Technical Indicators: Technical indicators can be added to charts to gain insights into price developments.
Technical Indicators
Technical indicators are tools used by traders to analyze price and market trends. MetaTrader 4 offers various technical indicators, from essential to advanced ones.
Some of the types of technical indicators available in MetaTrader 4 are:
Trend Indicators: Such as moving averages, which show the overall direction of price trends.
Momentum Indicators: The Relative Strength Index (RSI) measures the speed and strength of price movements.
Volume Indicators: The Money Flow Index (MFI) measures the amount of money flowing in and out of the market.
Oscillator Indicators: Such as Stochastic, which measures the relative position of price within a range.
Customizing Indicators
Like charts, technical indicators can also be customized in MetaTrader 4. Some customization options include:
Periodicity: Traders can adjust the periodicity of the indicators, from ticks to periods of several years.
Parameters: Many indicators have adjustable parameters, such as the period used to calculate the moving average.
Colour and Style: Traders can choose the colour and style of the indicators to suit their preferences.
Oscillators
As mentioned earlier, oscillators are technical indicators used to measure the price momentum of a financial instrument. These indicators are graphically represented in a separate window below the price chart and typically oscillate around a central line, considered a balanced signal.
Some examples of oscillators in MetaTrader 4 are:
Relative Strength Index (RSI): This oscillator measures the strength and speed of price movement by comparing the magnitude of upward and downward price movements. RSI values range between 0 and 100, with values above 70 considered overbought and below 30 considered oversold.
Stochastic: This oscillator is also used to measure overbought and oversold conditions. However, it is based on comparing the current closing prices with previous price ranges rather than the magnitude of upward and downward movements. The Stochastic oscillator also ranges from 0 to 100, with values above 80 considered overbought and below 20 considered oversold.
Moving Average Convergence Divergence (MACD): This oscillator measures the difference between two exponential moving averages and their relationship to a signal line. The MACD can indicate trend strength, direction, and potential buy and sell signals. The MACD indicator oscillates around a central zero line, with values above zero considered bullish and below zero considered bearish.
Fibonacci
In MT4, the Fibonacci indicator is used to identify necessary support and resistance levels in the financial market. This indicator is based on the Fibonacci sequence of numbers, which is generated by adding the two previous numbers to obtain the following number in the series (e.g., 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, etc.). These numbers create Fibonacci retracement and extension levels displayed on the price chart.
Fibonacci retracement levels are used to determine potential support and resistance areas. Expected Fibonacci retracement levels include 23.6%, 38.2%, 50%, 61.8%, and 78.6% of the distance between the two price points. These levels are plotted horizontally on the price chart to identify potential entry or exit points in a trade.
Fibonacci extension levels are used to determine potential profit targets in a trade. Common Fibonacci extension levels include 127.2%, 161.8%, 261.8%, and 423.6% of the distance between two price points. These levels are plotted vertically on the price chart and used to identify potential exit points in a trade.
Some examples of how the Fibonacci indicator can be used in MetaTrader 4 are:
Fibonacci retracement in an uptrend: If there is an uptrend in the market, the Fibonacci indicator can identify potential support areas. The Fibonacci indicator is drawn from the lowest point to the highest point of the uptrend, and the Fibonacci retracement levels are observed. It can be considered a potential support area if the price approaches one of these levels and holds steady.
Fibonacci extension in a downtrend: The Fibonacci indicator can identify potential profit targets if there is a downtrend in the market. The Fibonacci indicator is drawn from the highest point to the lowest point of the downtrend, and the Fibonacci extension levels are observed. If the price approaches one of these levels and holds steady, it can be considered a potential profit target.
Recursos adicionales sobre Metatrader 4
For those interested in learning more about MetaTrader 4, there are many additional resources available, such as:
Online tutorials and videos on using the platform.
Online forums and communities where trading strategies and joint issues are discussed.
Online training courses and programs on trading with MetaTrader 4.
Blogs and online publications on technical analysis and trading in general.
In summary, MT4 is an efficient and versatile trading platform that offers traders a wide range of tools and resources. With a proper understanding of its operation and features, traders can effectively use MetaTrader 4 to maximize profits and minimize risks associated with trading.
Portfolio Management
Improve Your Trading Decisions with These Analysis Tools in Metatrader 4
Once you understand the different technical analysis tools available in MT4, you must know how to use them to make informed trading decisions. Here are some steps you can follow:
Identify the market trend: Use trendlines and indicators to identify the market's direction. This will help you determine whether to open a buy or sell position.
Confirm the trend direction: Use oscillators to confirm the trend direction and detect overbought or oversold conditions.
Look for possible entry and exit points: Use tools such as Fibonacci levels and pivot points to identify possible entry and exit points in the market.
Define your Stop Loss and Take Profit levels: Use indicators and trendlines to set your Stop Loss and Take Profit levels, which will help limit your losses and secure your profits.
Trading Strategies in Metatrader 4
In MT4, traders can implement different trading strategies based on their investment profile and risk tolerance. Below are some of the most common strategies and how they can be implemented in the platform:
Scalping
Scalping is a trading strategy that involves opening and closing positions in very short periods, typically a few seconds or minutes, to make small profits on each trade.
To implement this strategy in Metatrader 4, it is recommended to use short-term charts such as one or 5-minute charts and use momentum indicators such as RSI or MACD to identify quick entry and exit opportunities.
Day Trading
Day trading is a strategy that involves opening and closing positions within the same trading day to take advantage of daily market fluctuations and make short-term profits.
To implement this strategy in MT4, it is recommended to use 15 or 30-minute charts and use technical analysis tools such as trendlines, support and resistance levels, and candlestick patterns to identify possible entry and exit points.
Swing Trading
Swing trading is a strategy that involves opening positions and holding them for several days or weeks, aiming to take advantage of medium-term market trends.
To implement this strategy in Metatrader 4, it is recommended to use 1-hour or 4-hour charts and use trend indicators such as MACD or moving averages to identify market trends and possible entry and exit points.
It is important to remember that each trading strategy has its own rules and specific techniques, and it is crucial to understand the strategy before implementing it in the platform. Additionally, proper risk management is essential, as using stop loss and take profit tools to limit losses and maximise profits.
Automated Trading in MT4
This feature allows traders to create and execute automated trading systems without constant supervision. In this section, we will see how it works.
MQL4 Programming Language
The MQL4 programming language creates automated trading systems in Metatrader 4. With MQL4, traders can program their own technical indicators, scripts, and expert advisors to execute trading operations automatically.
Creating Automated Trading Systems
Creating automated trading systems in Metatrader 4 is relatively simple, thanks to the platform's application programming interface (API). Traders can program their systems using the MQL4 programming language and execute them in real-time on the platform.
Automated systems can be complex and require advanced programming and technical analysis knowledge. However, MetaTrader 4 also offers a wide selection of pre-programmed robots and expert advisors that traders can use to automate their trading without the need to program from scratch.
Using Robots and Expert Advisors
Robots and expert advisors are pre-programmed programs that automatically execute trading operations in Metatrader 4. These programs use complex algorithms to analyse the market and make trading decisions based on parameters set by the trader.
The platform also offers a wide selection of pre-programmed programs that can be downloaded and installed with just a few clicks.
Pros and Cons
After exploring the main features of MT4, we can conclude that it is a highly efficient and versatile trading platform.
Advantages and Disadvantages of Metatrader 4
Among the advantages, we can mention:
Easy-to-use and customizable trading platform
Wide range of technical analysis tools
Automated trading through the programming of systems and robots
Wide selection of pre-programmed expert advisors
Access to multiple financial markets and an application programming interface (API) for integration with other trading tools and platforms
As for the disadvantages of MT4 to consider, we can mention the following:
The need for advanced technical knowledge for programming automated systems.
The platform can be slow and requires a good internet connection to avoid order execution delays.
Using expert advisors and automated systems can lead to emotional trading that may affect profitability.
Tips for Using Metatrader 4
Below, as a summary of everything discussed, are some valuable tips for effectively using Metatrader 4:
Learn the basic concepts of the platform and trading terminology before starting to trade.
Use the platform's wide range of technical analysis tools to make informed decisions.
Use automated trading only after understanding the associated risks and having a solid management system.
Use additional tools like news and market analysis to complement technical analysis and make more informed decisions.
Maintain a disciplined and patient attitude when trading in the market.
We hope this content has been helpful and you are ready to use MT4!