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To build MT4, you must know which indicators are more important in the index encyclopedia?

发布时间：2022-09-04 浏览：123

MT4 software not only comes with a variety of indicators, investors can also install their own customized indicators, investors can analyze the market and trade according to technical indicators. So specifically, which of the MT4 indicators are more important?

Technical indicators are any kind of indicators whose value comes from any general price activity of assets. As part of technical analysis, such indicators are designed to predict future price levels or the overall price direction of specific securities by looking at past patterns or past market performance. The most common indicators include:

Ø MACD (similarities and differences moving average indicator)

Ø Stochastics (random index)

Ø RSI (relative strength index)

Ø money flow index

Ø Bollinger Bands

MetaTrader 4 custom indicators are also diverse. Technical indicators are characterized in that they do not actually analyze any basic elements, such as revenue, return and profit margin. In fact, technical indicators are the most widely used technical indicators in the market by active foreign exchange traders, because they are mainly used to analyze short-term price movements.

For long-term investors or traders, most technical indicators are almost irrelevant, because they have actually taken no action to clarify the potential basic factors that may affect the price trend. Long term traders can still benefit from technical indicators because they can help define good entry and exit points by analyzing long-term trends.

Which of the MT4 indicators are more important?

When investors conduct technical analysis, the addition of MT4 technical indicators is a method that every investor has to use. Although the future price trend shown by the technical indicators lags behind the K-line shape of the candle chart, it is to a large extent the reconfirmation of the price information reflected in the candle chart shape. There are probably dozens of MT4 technical indicators commonly used in the market, The types of technical indicators extended through these technical indicators can be divided into hundreds.

MACD indicators:

MACD index, also known as the smooth average of similarities and differences, has great application value in both foreign exchange trading and stock trading.

The simplest use of MACD indicator is to make orders by color. If MACD indicator turns red, it is a good buying opportunity. On the contrary, when MACD indicator turns green, it is a selling opportunity.

KDJ index:

The Chinese name of KDJ index is random index, which was first used in the field of futures and later widely used in foreign exchange, stocks and other investor industries.

KDJ index is very sensitive to the market's response. When KDJ index is low, it can enter the market to absorb long positions; When at a high level, you can enter the market and short. KDJ indicator also often appears passivation, so it needs to be used in combination with other indicators.

RSI index:

RSI index is usually also called relative strength index, which mainly calculates the current market supply and demand relationship and trading strength.

RSI indicators can be set with different parameters. When the RSI indicator line with smaller parameters is above the larger parameter, it indicates the current market trend. If not, it indicates that the current market trend is downward.

Best MT4 index: energy tide index obv

The energy tide indicator (obv) is used to measure the positive and negative trading volume of the price of securities over time. Incidentally, this indicator is one of the best free MT4 indicators available to traders.

This is a simple method, which can maintain the cumulative quantity by increasing or subtracting the trading volume in each period according to the price change.

In addition, the measure expands the basic trading volume by combining price changes and trading volume. The logic behind this indicator is that the quantity precedes the price trend. Therefore, if the obv of securities increases, it indicates that the price increases with the price rise. Conversely, the decrease means that securities are increasing in the days of decline.

Best MT4 index: discrete index IAD

Discrete indicator (IAD) is one of the most commonly used best MT4 indicators of foreign exchange. It is similar to the energy tide index, but there is an important difference.

In addition to considering only the closing price of securities during the period, it also considers the trading range during the period.

Therefore, it is believed that this can provide a more accurate flow of funds than obv. In addition, the rising trend line is a sign of increased buying pressure, as the tool is approaching the midpoint of a specific range. In turn, the downward trend of this line indicates an increase in selling pressure in specific securities.