From custom indicators to automated strategies, MT4 offers traders a flexible environment to work with. MT4 offers a user-friendly interface, tools, and resources that meet the most common trader´s needs. In addition, the mt4 download is available for Windows, Mac and Linux, which makes it a very convenient platform.

top mt4 indicators

What are the top 10 MT4 Indicators and how to use them?

This guide will show you the top ten essential indicators that will help take your trading game up a notch.

Moving Average (MA)

The Moving Average (MA) shows the average price of a security over a defined time period. Moving averages are typically used to identify trends in stock or currency prices, measure momentum, and detect support and resistance levels.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is used to measure the strength of the price movements of an asset. It is a momentum oscillator which fluctuates between 0 and 100, indicating whether an asset is overbought or oversold.

Bollinger Bands (BB)

Bollinger Bands (BB) can help traders identify when a stock is overbought or oversold. It works by plotting two bands around the price of an asset – one upper band and one lower band – that can help investors and traders determine whether the asset’s price is too high or too low. The upper band marks resistance, while the lower band marks support.

Stochastic Oscillator (SO)

The Stochastic Oscillator (SO), also sometimes referred to as the “Stochastic”, measures the momentum of price movement. Traders and investors use it to identify reversals in the market trend and indicate overbought or oversold conditions.

Accumulation/Distribution Index (ADI)

The Accumulation/Distribution Index (ADI) measures money flow into and out of an asset. It looks at price changes and trading volume to determine whether investors are primarily buying or selling that asset.

Parabolic SAR (PSAR)

The Parabolic SAR, or PSAR, determines the direction of a security’s price trend. It works by plotting points beneath the price in an uptrend and above the price in a downtrend. The closer the points are to the price, the more likely the trend will continue. PSAR can be used as a trade entry point and exit point when a trend reverses.

Average Directional Movement Index (ADX)

The Average Directional Movement Index (ADX) is used to measure the strength or weakness of a trend. It is calculated using the highs and lows of successive price bars and helps identify a trend’s direction and strength.

Momentum Indicator (MI)

The Momentum Indicator (MI) is used in technical analysis to gauge the strength of a trend. It measures the rate of change in price over a set period of time and can be used as an indicator of how strong or weak the momentum in a particular market trend is. The MI typically compares two prices at two different points in time, usually closing prices over different periods.

Moving Average Convergence Divergence (MACD) 

The Moving Average Convergence Divergence (MACD) is used to identify potential trading opportunities. It compares the relationship between two moving averages of different lengths, typically a 26-day exponential moving average and a 12-day exponential moving average.

Ichimoku Kinko Hyo (ICHIMOKU) 

The key elements of Ichimoku are five lines: Tenkan-sen (Turning Line), Kijun-sen (Standard Line), Senkou Span A (Leading Span A), Senkou Span B (Leading Span B) and Chikou Span (Lagging Span). These lines form a rotating cloud-like shape that helps traders better identify short-term trends and longer-term momentum.

Final thoughts

Understanding and using technical analysis indicators is an important skill for traders and investors. Even though no single indicator can provide all of the answers, having a good understanding of how each works can help traders identify potential opportunities in the market. Ultimately, it’s up to the trader to decide which indicators best suit their trading style.