According to research in South Africa, MetaTrader 4 for Desktop, is an online trading platform which was designed by MetaQuotes and launched in 2005. Since its launch it has gained greatly in popularity due to the user-friendly interface along with a variety of tools provided which sets it apart from its peers.
MetaTrader 4 is designed to cater for traders with various levels of experience and makes provision for the creating and testing of strategies, technical analysis and use of automated trading software.
Where to begin
The first step is to register an account with a broker, whether it is a demo account or a live account. To be able to use MetaTrader 4, it will have to be a broker that supports and lists MetaTrader 4 as one of its trading platforms.
MetaTrader 4 can either be downloaded directly from the broker’s website, or it can be downloaded from the official website for free. Upon clicking ‘Download’, the trader can simply follow the prompts and the file will be downloaded.
Once the download has completed, the trader can double-click the .exe file to begin installation if not prompted by their web-browser to begin installation (it depends on the browser along with user preference whether the application can run from the browser).
A window will then pop up to ask permission for the program to make changes to the user’s device. Should the user click ‘Yes’, an installation window will display the License Agreement which the user will have to read and then accept by clicking ‘Next’.
Installation of the program will then proceed. As soon as installation has been completed, the software will recognize its default parameters and the user will then receive several messages in their mailbox, located at the very bottom of the MetaTrader 4 window.
One of these is to open an account and to be able to do this, the trader needs to have an existing account with a broker that they can register on the MetaTrader 4 platform, or the trader can explore the platform and practice trading using the default demo account.
How to Use the MetaTrader 4 trading platform
MetaTrader 4 has a very user-friendly interface which is divided into six different areas, which stand for the different currency pairs that the trader has selected. The areas displayed on the interface, are:
- The Control Ribbon – which provides functions for any actions that can be performed in MetaTrader 4
- The Toolbar – Which has several essential functions, options, and tools that traders can use to Master MetaTrader 4, these include
- General Commands
- Charts
- Line Studies, and
- Timeframes
- Market Watch – in this section, the trader can open the currency chart which they wish to see in the chart window which can be used for analysis and trade in addition to:
- The option to open a new order
- The chart window
- Tick chart
- Depth of market, and
- Specification
- Navigator – here traders can log into different trading accounts or they could open a demon account. In addition, there is also the option of testing trading strategies before moving into a live trading environment.
- Terminal window – this shows the trader’s open orders, their exposure, trading history, messages, and alerts
- Charts Workspace – which allows traders to display different charts along with the ability to conduct a trading analysis.
MetaTrader 4 Chart Types
One of MetaTrader 4’s unique features is the ability and freedom that traders have to customize the appearance along with the prices on each chart. Chart windows can be closed at any given time along with the window size being adjusted as the trader needs it.
In addition, traders can also ‘Zoom in’ or ‘Zoom out’ of charts should they want to look more closely at a small range of data and when they want the chart size to return to default.
How to set up charts in MetaTrader 4
The default charts with which the MetaTrader 4 program opens can be changed in a variety of ways along with additional information and features being added to the chart, depending on the information that the trader wants to see and the way it should be presented.
Changing the chart style
MetaTrader 4 allows traders to choose between three different chart types namely candlestick, bar, and line charts. The type of chart will depend on the trader and the information that they would like presented on the chart.
The Chart Style can easily be changed by clicking on one of the three corresponding buttons in the Toolbar which can be found between the ‘New Order’ button and the ‘Zoom in/out’ buttons.
How to change the colour scheme of the chart
As soon as the trader has chosen their chart style, they can easily change the colour scheme of the chart to more clearly display data. MetaTrader 4 allows multiple aspects to be displayed on a single chart.
When a lot of data is represented on a chart in similar colours, it may become exceedingly difficult to read the individual elements on the chart. By changing the colour schemes of these elements, the data may be a lot more readable.
In addition, changing colour schemes can also show traders when a price has moved either up or down. Colour schemes on charts can be changed by:
- Right-clicking on the chart and moving the curser to ‘Properties’ from the window or by pressing F8 on the keyboard.
- Selecting Colours from the three tabs visible in the new window that pops up.
- Changing the colours of various components as the trader prefers, keeping in mind that although there are a variety of colours, choosing contrasting colours will make the chart easier to read and movements can be tracked more easily.
How to remove grid lines and display other data
Gridlines are standard on the default charts that are shown when opening the program, but this can easily be removed should it prove to be more difficult in trying to read the chart.
Beginner traders may especially struggle with reading charts if the gridlines are visible, but for others it may serve as a guide instead.
Should the trader wish to remove the gridlines, the trader can right-click on the chart and select ‘Properties’, or press F8 on the keyboard, then select ‘Show’ and deselecting the tick-box next to gridlines.
In addition to gridlines, the trader can also choose to hide/remove other aspects of the charts, depending on what they wish to see such as the bid/ask price lines and more.
Saving a chart template
Should the trader wish to keep a standard template that they would like to apply to other charts, or they want to create and save different charts for different purposes, chat templates can be saved onto the desktop in a location of the trader’s choosing.
As soon as the trader is happy with the template that they have created, they can right-click on the chart, drag the curser down to ‘Templates’ and select ‘Save Template’ from the side options.
A new window will then open, allowing the trader to choose a destination to where the template will be saved, and the trader can provide it with a specific name.
When the trader would like to load a saved template, it can be done by right-clicking on the chart, moving the curser to ‘Templates’ and selecting ‘Load Template’ from the side options.
A new window will open, and the trader can select the destination to where templates are saved, select the template they wish to use, and it will be loaded onto the interface.
Changing time frames on charts
MetaTrader 4 has nine different timeframes already built into the trading platform.
This allows the trader to view a specific period on the chart depending on their preference and it can either be based on one, five, fifteen or thirty minutes, an hour, four hours, a day, a week, or a month.
To change the timeframe of the chart, the trader can select it from the toolbar or by using the submenu button which is provided specifically for timeframes in the standard toolbar.
Using the Cross-hair to display additional data on charts
The cross-hair function is one that can improve the agility of traders with regards to trading analysis along with providing specific information.
This function can be accessed from the Line Studies Toolbar and it replaces the standard curser with a crosshair. The crosshair can be used by moving the mouse over the chart to display highlights along with specific prices and times.
The crosshair can be used in all chart styles and has the benefit of displaying pip distances on the bar chart. It can also be used to determine stop loss and take profit levels.
Drawing tools and indicators for charts
Charts can further be customized by using a variety of objects such as vertical lines, horizontal lines, trendlines and many more.
Traders can make use of these by selecting the object from the provided toolbar and clicking on the relevant chart where they would like to apply it. The position of some objects can be changed by clicking on the chart, holding the mouse button in, and moving it around.
Other objects need a separate window within which customization can be done. Objects can be added, edited and removed on MetaTrader 4’s charts in a remarkably simple way.
Should the trader wish to edit or remove an object, it can be done by right-clicking on the chart and selecting ‘Objects List’ which will open a new window displaying the active objects in use on the chart, from here the trader can edit or remove the object.
MetaTrader 4 has a wide variety of indicators that are built-in to the platform. Indicators can also be created outside of the platform and imported to the platform for use by traders.
Indicators can be accessed from the ‘Insert’ toolbar and moving the cursor to ‘Indicators’, upon which the trader can select from a variety of indicators that can be added onto the chart.
Technical Analysis
Traders can perform a technical analysis on MetaTrader 4 by using either several features to choose from, some of these include the Elliott Waves Theory, trend indicators, oscillators, market geometry and many more.
Once a trader has determined their trading style and done a technical analysis, the trader can save it as a profile which can be accessed from any other MetaTrader account.
Should the trader close the platform while having the profile open, changes will automatically be saved and once the program is opened, the profile will still be there with prior changes still in effect.
Trading with MetaTrader 4
Once a trader, especially a beginner trader, has familiarized themselves with how the platform works, how it can be customized and where to find everything they need, trade can commence.
There are three ways that a trader can open an order:
- By right-clicking on the currency pair of choice from the ‘Market Watch’ window and by then selecting ‘New Trade’.
- By right-clicking on an active chart displaying the trader’s currency pair of choice and selecting ‘Trade’ along with ‘New Order’, or
- By simply selecting ‘New Order’ from the top toolbar.
When a new order is opened, the trader will be prompted to adjust the following:
- Symbol – referring to the currency pair or financial instrument the trader wants to trade
- Volume – is adjusted by the trader according to their trading strategy or according to their risk and money management
- Stop Loss and Take Profit – which can either be adjusted on the new order, or changed after the order has been placed
- Comment – which allows traders to add any comments pertaining to observations made with regards to the specific trade they are opening
- Type – refers to either the market execution/instant orders or the option of selecting a pending order, depending on which the trader would like to apply
All open orders can be viewed in the ‘Terminal’ area when the trader clicks on the ‘Trade’ tab, from here, open orders can also be modified or deleted.
Should a trader wish to modify or delete an order, a window will be opened in which the trader can manually determine the stop loss or take profit levels.
Traders can close an order as soon as the price achieves either the stop loss, trailing stop or take profit level. This can also be done from the ‘Terminal’ area provided.
Expert Advisors, Trading Signals and VPS
Expert Advisors
MetaTrader 4 makes provision for the use of Expert Advisors, or EAs, that are essentially robots who can trade on behalf of the trader by following strict commands and perimeters set by the trader according to their trading strategies.
MetaTrader 4 provides access to MQL4 IDE (Integrated Development Environment) which allows traders to develop EAs and import them to the MetaTrader 4 platform.
EAs can be obtained either from a Code Base Library, from the Market or it can be sourced from developers and imported to the MetaTrader 4 trading platform installed on the trader’s desktop.
Trading Signals
This is a social trading service that comes built-in to the MetaTrader 4 trading platform. This allows traders to copy deals that other traders have completed directly into the trader’s Terminal.
Traders can choose from a variety of Signals Providers and subscribe to their signals. When subscribed to a provider, their deals are automatically copied to the trader’s account.
Before subscribing to a provider, it is necessary to evaluate the parameters of the provider before subscribing.
VPS or Virtual Private Server
Metatrader 4 provides its traders with the option of renting a VPS from the Metatrader 4 for desktop platform’s Terminal. This ensures that traders will have uninterrupted operation regarding EAs along with signal subscriptions.
Using a VPS ensures minimum network latency to a broker server along with it being easy to use.
Conclusion and Writer’s Opinion
MetaTrader 4 is a highly popular trading platform amongst both brokers and traders alike. Traders are able to customize charts in a variety of ways and it adds to the overall trading experience.
MetaTrader 4 for desktop is definitely the beginning point especially for beginner traders and it is advisable to read through guides and tutorials while applying tips and pointers physically to the platform to get a hands-on feel.
It is highly advisable that beginner traders start using the desktop version of MetaTrader 4 before moving to the mobile versions as the desktop version will provide them with an idea of the basic concepts, actions and more regarding trading, according to research in South Africa.
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