What is MetaTrader 4? Learn all about MT4 for newbies
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What is MetaTrader 4? MT4 or MetaTrader 4 is a familiar trading platform for traders. Using MT4 makes it possible to trade robots automatically or easily install additional technical indicators at will. This article will explain to you better what MetaTrader 4 is, how to use MT4 and all the information you need to know.
What is MetaTrader 4?
MetaTrader 4 (aka MT4) is a trading software developed in 2005 by the software company MetaQuotes. MT4 software is commonly used for forex trading. However, now this software is also used in other financial markets: stocks, indices, cryptocurrencies, commodities… in the form of CFDs.
The MetaTrader 4 software became popular because you can easily customize it according to the trader’s wishes in color, chart type (bars, lines, candles…), or optionally adding technical indicators… Besides, when using MT4, you can also use the robot to trade automatically according to predefined parameters.
Open an MT4 account to trade.
To trade on MetaTrader 4, you need to open an MT4 account through a broker. You can open an MT4 account on Capital.com at the link below:
* See more: The complete guide Capital.com from a to z
* See more: The complete guide Capital.com from a to z
After successfully opening an MT4 account, you log in and download the MT4 software on your computer device or phone.
What are the basic trading features of MetaTrader 4?
1. Open a trading order on MT4
After successful login, click [Tool], select [New Order], or press F9 on the keyboard to open a new transaction.
The order window appears. You choose the parameters for your transaction:
- Symbol: You click to select a transaction code.
- Volume: Trading volume.
- Stop Loss: The price you want to stop loss, close the order to prevent more casualties.
- Take Profit: The price at which you want to take profit for the trade.
- Comment: Comment, comment, or note for this transaction.
- Type: You can select [Instant Execution] if you want the transaction to be executed immediately. Or [Pending Order] if you’re going to place a pending order at a specific price.
If you select [Instant Execution], the following window will appear:
- [Enable maximum deviation from the quoted price] option: If you check this box, it means that you allow the maximum deviation from the quoted price (in pips). Then you need to enter the number of pips that you can accept to open the order.
- You choose [Buy] if you expect the market to rise or [Sell] if you wish to fall.
If you select [Pending Order] order type in Type, the following window will appear:
- Type: The pending order you want to use (Buy Limit, Sell Limit, Buy Stop, and Sell Stop.
- At Price: The price at which you want to open a trade.
- Expiry: If you check this box, you will set the date broker will cancel the pending order if the price of the pending order has not been reached.
- Place: Press this button to open a pending order.
2. View opened and pending orders on MetaTrader 4
To view open and pending orders on MT4, click [View], select [Terminal] (or press Ctrl + T). Then, select the [Trade] tab.
To close an open order or cancel a pending order, click the [x] in the bottom right corner of the order.
3. Change the stop loss, take profit levels for trading on MT4
On the [Terminal] window, [Trade] tab, right-click the order you want to edit, then select [Modify or delete order].
The trading window appears. You change the stop loss, take profit for your trade. Press [Modify] in red to confirm.
Custom charting on MetaTrader 4
What is MetaTrader 4 chart customization?
The chart on MetaTrader 4 is an area that shows the historical price chart of the asset you are trading. Customizing charts on MT4 means, you can add chart objects such as:
- Draw more lines, diagonals, arrows…),
- More technical indicators…
- Change the display time frame.
1. Draw more objects on the MT4 chart
MT4 allows you to draw additional objects, including:
- Pointer: This is a tool for you to hover over the chart to perform operations.
- Crosshair: When you select this object, you hover over the chart to see the diagonal line aligning to the corresponding price and time area, helping you determine the cost of each time more accurately.
- Draw vertical lines: You will draw straight lines on the chart when you click on this object. To place the bar where you select the thing, move the mouse to the chart area to draw the line and left click to remove.
- Draw horizontal lines: Similarly, select this object to draw horizontal lines on the chart.
- Draw a trendline: This is an object that helps you draw a trendline on the chart.
- Draw channels equidistant from both sides.
- Draw a Fibonacci retracement line
- Add text
- Add text label
Select the object on the toolbar and click on the location to remove the object on the chart to draw more things.
To edit or delete an object, you right-click on the chart, then select [Objects list] on the Menu. An on-screen window displays a list of all the objects being used on the chart. To edit or change an object, click it from the list and select [Edit]. To delete, select [Delete].
2. Add technical indicators on the chart
To add a technical indicator to the chart (Example MA, RSI, Bollinger Bands…), on the [Navigator] window, select [Indicators], then choose an indicator you want to add and drag it. Drop it on the chart.
You can also add an indicator by selecting [Insert] on the menu bar, [Indicators], and selecting the indicator you want to use.
The display will show a window for you to change the collection of the indicator. You can set the parameters and colors to your liking.
3. Change chart time frame
To change the chart’s timeframe on MT4, you right-click on the chart, select [Timeframe], then select the timeframe you want to view. The following timeframes are available:
- M1 (1 minute)
- M5 (5 minutes)
- M15 (15 minutes)
- M30 (30 minutes)
- H1 (1 hour)
- H4 (4 hours)
- D1 (1 day)
- W1 (1 week)
- MN (1 month)
In the above article, we have learned about MetaTrader 4 and how to use it basically to open a trade, view open businesses, and pending orders. In addition, you also know about basic customization operations on charts. I hope this article helps you to initially access and use MT4 software more efficiently.
Read more: MT4