How to Add Indicators and Trendlines on MT4

Access Free Content

Video Transcription:

Hello traders. Welcome to the advanced MT4 course and the second module Platform Tools.

In this lesson, we’re going to teach you how to add and eliminate indicators and lines from your charts.

The first thing you need to know is that you have both horizontal and vertical lines that you can add to your charts. And of course, you have the trend line that you can also add to your chart. But let’s start with the indicators that you can add to your charts. This button right here is the indicators button. When you click on it, you have all the latest indicators that you have used, and you have your trending indicators such as the Bollinger Bands, the Ichimoku Kinko Hyo, the Parabolic SAR, et cetera. You have all your oscillators such as the MACD, the RSI and the Stochastics, your volume indicators, your Bill Williams indicators, and all your custom indicators.

Adding Indicators to MT4 Platform

Adding Indicators to MT4 Platform

Now, what you need to do is let’s grab — Let’s go to the EUR/USD chart for starters. So we grab our profile then we go to majors and we wait for it to chart. Then we open the EUR/USD, and this is the one I will chart. Let’s open the daily chart on the EUR/USD and let’s zoom it out a little bit. Now, this a naked chart of the daily EUR/USD. Let’s say that we want to add a stochastic oscillator because we want to know if we are at an extreme level and if this a good area to buy the EUR/USD. What you do is you go to this button right here and you point oscillators. Then you point on stochastic oscillator and click on it. And then you choose your periods. This is a fast stochastic oscillator, but the actual parameters don’t matter in this video.

So let’s say that we want a super fast stochastic oscillator. Here we are. Now, as you can see, this stochastic oscillator reacts super strongly to the price movements. So this is not really a good indicator to have on a daily charts. If you have this problem and you want to modify some of their parameters, you just go to the stochastic oscillator and point at one of the moving average and double click on it. That will prompt your stochastic oscillator parameters.

Then it’s just a matter of which K-percent period you want. Let’s say that we want a default parameter on the stochastic oscillator. So we point at a (14,3,3) stochastic and you can also change the colors because this is not very visually appealing and you need to have a very visually appealing indicators and charts. So your main color, which was before dark tortoise is now navy blue, and the signal is red. Of course, you can change also the appearance of the lines and the width of the lines. Now, you can also change the levels on your stochastic oscillator. This can be done in any oscillator you want. Let’s say that we want really Overbought and Oversold levels, and we change it to a 15, 85. That’s just to give you an example, and our line is black. As you can see, now we have a better understanding of the stochastic levels that we are at, and just by looking at the stochastic oscillator, this is not a very good spot to buy on a blind trade.

This is how you add and how you modify oscillators on your MT4. This goes for either the MACD, the RSI, the stochastic or the William’s Percent Range, et cetera, any of the oscillators.

Screen Shot 2014-11-24 at 15.31.40

Now, let’s say that you want a trending oscillator and you want the Parabolic SAR. You can see that the other indicators have the same style, you choose the parameters and the visualization, so we want them to show in all the time frames, so we click OK and now you have the Parabolic SAR on them. That’s easy. The more complicated indicators are, the — Well, to modify, are the oscillators because you can modify the speed of the oscillator and, of course, you can choose your Overbought and Oversold levels.

To eliminate an indicator, you just right click on the chart and you go to “indicator list”. Now, you can see that you have all the indicators here. You have the indicators that you have on your main chart, and we only have the Parabolic SAR, and your indicators on the window number one, which is this one right here where the oscillators are. Let’s say that we want to keep the stochastic oscillator, but we want to eliminate the Parabolic SAR. We just click on Parabolic SAR and delete and then close and then there you go. The indicator on the main chart is gone. You can use them for any other indicators that you want. Let’s say that you’re starting to look for some indicators to use on your charts and then you clog your charts with a lot of indicators. And it looks like this.

This is un-tradeable because there is too many indicators on your charts. You just right click on your chart. You go to your indicator list and you click on “delete” on the indicators that you want to delete from your charts. Then there you go, you just have the stochastic oscillator and you have a normal setting on the Bollinger bands. You can see here, we are about to get a squeeze out of the Bollinger bands, which can mean that we are going to move up. But, that’s not the main focus of the video. The main focus of the video is indicators.

Adding Lines to MT4

Adding Lines to MT4

Now, let’s go to trendlines. Let me just get rid of the Bollinger bands here, and let’s keep the stochastic oscillator, because we’re drawing trendlines and I’m going to show you that you can also draw trendlines on the oscillators too. Now, the first thing you need to know is that the horizontal trendline is mainly used for support and resistance levels. If you see here, if you double click on the trendline, these squares will appear at a price level. This means that the trendline is active and you can move it up and down.

So let’s leave it right here. If you double click it again, you can see that the squares are gone, which means that the horizontal line is no longer active, so you can’t move it. Now, you need to be careful because you can also — If you have, let’s say, three or four horizontal lines, and you want to delete three of them, you just double click on the ones that you want to delete. You check that in fact, those trendlines have the squares at the level price and you click on your keyboard “delete” key. That’s one way to delete your horizontal lines as well as your trendlines.

If you want to modify the color or the width of the trendline, you just double click to activate the trendline and then right click on the trendline and go to horizontal trendline properties. Now you can choose the color, the width or the style of the line. As you can see, it changes.

Adding Trendlines on the MT4 Platform

Adding Trendlines on the MT4 Platform

The same thing goes for trendlines. The only thing about trendlines is what I’m about to show you. Let’s say that we draw this trendline right here. We chose this low and this high for the trendline. If you go to “properties” — To go to “properties”, you right click on the trendline and then you click on the properties. You can see that you can also change the style of the trendline and the width of the trendline, but the main thing about this is that if you have this square clicked, the rates where clicked, it means that the trainer will go on forever on your charts.

If you unclick it, it will only go from the point of start, which is this low to the point of end, which is this low right here, and you can choose to go as far as you want.

Another cool thing about trendlines on the MT4 platform is that you can create parallel trendlines by just clicking on your control key on your keyboard and holding it and then just moving your trendline up or down. Then you can create a parallel channel or an Equidistant Channel, I’m sorry, or you just can create parallel lines. That’s another cool feature about the trendlines on the MT4.

The last thing I want to go through is that you can also use trendlines on your oscillators. This is pretty cool because if you have like this, the oscillator making lower highs, you are waiting for a break out, you can draw a trendline like I just did right here, and wait for the break out right here. Or if you are having higher lows like in here, you can draw a trendline to visually have these areas of support on your oscillator. When the oscillator breaks below the area of support, you can see that price also breaks to the downside. And that’s another cool trick about trendlines and the MT4 platform.

So this is how you work your trendlines and your indicators on your charts on the MT4 platform.


More About

Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

View Posts - Visit Website

Comments are closed.