If you are looking for the most sophisticated trading platform that we have nowadays for Forex and other markets, then MetaTrader 5 is the best option. It is not popular for nothing. One of the many reasons why it is loved by a lot of traders is its capability to support technical indicators that are complex but very useful in trading. It even has the ability to develop custom ones using its programming language, the MQL5.
Another factor that contributes to the popularity of MT5 is its trading indicators which are very helpful in predicting the price movement in the future. The most used indicators in MetaTrader 5 are The Alligator, The Zigzag, and The Money Flow Index.
The Zigzag Indicator
The first stop is the most used and basic indicator in MT5 – The Zigzag. This indicator helps traders and analysts in determining the time when the security’s price will reverse. The Zigzag indicator helps mark the support and resistance areas. This means that this indicator helps in finding out the stronger areas for the buyer or seller. By doing so, this indicator identifies changes that may take place on the trend. It is called The Zigzag indicator because its shape appears in a zigzag form.
The Alligator Indicator
Bill Williams named this indicator The Alligator because it resembles a real alligator. This indicator utilizes three moving averages (MA). The jaw is the slowest MA, the teeth as the intermediate MA, and the lips as the fastest MA. This indicator is being used to know the stationary phases. The three Mas helps determine the time as to when this non-trending situation may change into a downward trend or an upward trend.
The Money Flow Index (MFI)
Another very useful indicator in MT5 is the Money Flow Index. This indicator utilizes the volume and price of the asset when detecting the current situation of the market – either the asset is oversold or overbought. When you measure this on the scale, this indicator will provide signals that will help determine the increase or decrease of the price.
The MT5 together with its predecessor, the MetaTrader 4, has set an industry standard that other competitors are striving to surpass. But if you get to check the previous trading platform from the same company, you will notice that MT5 indeed has more space for a variety of instruments and offers a whole bunch of new indicators.
When it comes to the indicators in this software, it greatly helps traders in doing a quick research of the price movement that has recently happened. It also helps in detecting patterns in trends and even tries to predict occurrences. There are a lot of indicators that are already pre-installed in MetaTrader 5 (MT5) and there are also others that can be downloaded from the internet. But the three most-used and popular indicators in this trading platform are the Zigzag, The Alligator, and the Money Flow Index (MFI). All these indicators have unique features and they are being used in a different way.