What is MetaTrader 5?
MetaTrader 5 is one of the most used multi-asset trading platforms in the currency and equity trading sector worldwide.
The MetaTrader 5 platform provides a wide range of pre-programmed indicators for your chart technical analysis.
Beside these pre-programmed indicators, you can also programme new ones through the MQL5 programming language. The advantages are: the ability to create signals, scripts, indicators, and entire trading systems so that a trader has the opportunity to open positions automatically without any type of manual intervention.
The platform also offers the possibility of carrying out fundamental analyses through a constantly updated financial calendar.
In addition to the already vast number of features inherited from the older sister, MT4, MetaTrader 5 adds new ones including:
- Buy / Sell with one click.
- Amplified periodicity of the graphic window.
- Improvement of the “Strategy tester” functionality.
- Improved programming language.
- Increased number of executions.
- Increased number of order types.
And many more.
While presenting an interface that is on average more complex than other platforms, it compensates widely with a series of features that are difficult to match, allowing even less-experienced traders to practice by opening a demo account.
From the user interface you can make customisations to meet the different needs of traders, to name a few:
- Select from 19 available languages.
- Activate or deactivate Expert Advisors.
- Change the graphic representation of prices.
- Access the technical analysis tools (indicators, oscillators, etc …).
- Access the graphical analysis tools (horizontal, vertical, segments, texts, etc …).
From the “Market Watch” section, it is also possible to modify the list of products available for trading by showing or hiding them as needed, and to modify the information relating to the price.
Currencies will be shown in green while CFDs will be shown in yellow. With a grey background, the CFDs that have expired will, therefore, be displayed and no longer negotiable.
However, it will be necessary, at each login, to update the list of products in the “Market Observatory” section since the list of the same may vary based on the account used or the addition of new contracts.
One of the most important sections of the platform is certainly the “terminal” window in which all the information relating to the account is shown, such as:
- Account balance.
- Used Margin.
- Available Margin.
- The margin’s percentage level.
- List of open positions.
- List of closed positions.
In addition to this information, from the “terminal” section it is possible to access financial information in the form of “news” or set “alarms”.
An important tool that has been improved MetaTrader 5 compared to its previous version is definitely the “Strategy Tester” which now performs tests much faster.
It is useful to specify that, before using the different “Expert Advisors – EA”, made available by default by the platform, it is better to inquire about how they have been designed and which products are best activated.
Compatible with Windows, Mac operating systems also a web version, the MetaTrader 5 trading platform offers the trader everything needed to operate on the markets quickly and effectively.
MetaTrader 5 Technical Analysis
Anyone who operates actively on the financial markets knows how important technical analysis is when it comes to making decisions about opening and closing positions, identifying trends or reversing them.
To do this, MetaTrader 5 provides the trader with all the tools necessary to perform the task at best.
The term technical analysis is intended to define the study of the price trend of the various financial markets over time in order to predict future trends, their possible reversals or continuations, thanks to graphic and statistical methods.
Whether your signals come from medium crossings, divergences with oscillators, breakouts of supports and resistances or more complex systems, the possibilities offered will satisfy every type of operation.
Starting to do technical analysis on the platform is very simple, in fact, using the first icons in the toolbar above the graph screen, you can quickly draw trend lines, horizontal lines to signal supports and resistances, texts and Fibonacci retracement levels, allowing you to identify the most important price levels at a glance.
It is also possible to customise it by adding or removing different design elements from it according to your preferences.
To access the various technical analysis tools, simply click on the “insert” section located in the user interface bar and select the desired tool from the various groups present. It is then be possible to manage those entered directly from the graph.
By clicking with the right mouse button, a drop-down menu is displayed, among which there is a “list of indicators” to further manage the settings of the indicators and oscillators inserted so far, as well as, using the “object list” option it is possible to access the modification of the settings of any trendline, horizontal or other graphic tools.
It is useful to point out that most of the actions that can be performed on the platform are also accessible via “shortcuts” on the keyboard.
Speed, needless to say, is fundamental in this field.
For example, one or more moving averages can be added to the graph to derive possible signals from the price intersections or from the intersections between the averages themselves.
Or set up an oscillator like the stochastic that allows you to identify possible divergences with prices.
Information related to volumes is very important to traders. Data about volumes allow us to understand if a given price movement is supported by increasing interest from investors, thus allowing us to understand whether the trend can continue or indeed has a short life.
MT5 by default makes several volume indicators available to the trader such as the money flow index, the accumulation / distribution or the histogram of the volumes.
The possibilities obviously do not end here, the platform offers over 80 indicators and almost 50 analytical objects such as geometric shapes, channels and all the tools of Gann, Fibonacci, and Elliot.
But, if that’s not enough, it is possible not only to import new ones from the outside but, for the skilled computers users, to literally change the calculation settings by accessing the programming language through the MetaEditor application.
Thanks to this application you can even program Expert Advisors from scratch to perform strategy backtests and automate your trading.
In short, whether you are a beginner or an accomplished analyst, the MetaTrader 5 platform gives everyone the opportunity to perform quick and precise analyses allowing you to identify at a glance a trend direction and strength.
Speaking of financial and trading markets, the first image to come to anyone’s mind is the classic price chart in line with its peaks and valleys.
As it is customary to say in the sector “the price discounts everything”, any public or private news, or any data is already discounted by the prices and their effects are clearly visible on the market through the graphs.
At this point, even the less experienced appreciate the fundamental contribution of the charts to the trader’s operations.
The MetaTrader 5 platform gives, by default, the possibility of displaying the graphs in three different representations, line, bar, and Japanese candles.
Here’s a brief description.
The line graph: the graphical line display is probably the simplest representing only one data for each trading session, usually the closing price.
This type of visualization provides less data but a greater visual cleanliness.
This makes it possible to identify maximum, and minimum key levels with greater ease by eliminating the “background noise” caused by the volatility peaks during the trading session.
The bar graph: the bar graph display is among the most used, in fact, compared to the line configuration it gives the user more data from the start, the opening price shown by a small horizontal line located to the left of the bar, the closing price shown instead by a small line on the right of the bar, the maximum price and the minimum price.
On MetaTrader 5 is possible to further customise the chart by choosing the colours of bars and much more.
The advantages compared to the line chart are visible at a glance, giving the possibility to easily identify the upward and downward sessions and allowing the identification of graphic configurations used in the technical analysis.
The Japanese Candlestick Chart: Candlestick charts were first used in Japan in the 18th century to predict the trend in rice prices.
Probably the most used type of graphic representation now owes its success to the number of immediately visible data, opening, closing, maximum, minimum combined with an even clearer display than that provided by the bar chart.
In fact, the opening and closing prices are joined together forming what is called the “body” of the candle. The other elements of the so-called candle are the “shadows” or the lines that connect the body to the maximum and minimum points reached by the prices during the session.
The substantial advantage given by the candles compared to the bars derives from the greater ease of identifying the price excursion in the session which makes it easier to study the vast group of graphic configurations, the so-called “patterns”, such as the “hammer” or “shooting star”.
Among the simplest there’s one-candle, and then up to the more complex configurations involving a greater number of candles such as the “three white soldiers” and “the advance block”, all typical of technical analysis.
All you have to do is open MetaTrader 5 and start configuring the charts according to your personal tastes until you find the one that best suits your needs.