MetaTrader 5: The Complete Guide
MetaTrader 5, the powerful automated trading platform, offers advanced tools for successful trading analysis and trades in the financial markets. Aside from Forex, the MT5 platform helps you trade Stocks, CFDs, and Futures. It has numerous order types and execution modes that allow traders to use custom trading strategies even when their machine is not online.
What is MetaTrader 5?
MetaTrader 5 (MT5) is a platform that allows you to trade Stocks, CFDs, Forex, and Futures. With MT5, traders can use algorithmic trading applications to automate trades, including trading robots and Expert Advisors (EA). You can build your own EAs or import built-in EAs onto the MT5 platform.
Here are other features of MT5:
- Multiple open positions
- Accurate technical and fundamental analysis
- Up to 100 Stock quotes and currency charts
- 21 different timeframes
Top features of MetaTrader 5
Predicts market direction
MT5 offers multiple analytical tools for comprehensive price analysis and forecasting. It has 38 technical and 39 graphical indicators to understand the market movement and direction better, apart from 80 built-in analytical indicators.
Supports the advanced Market Depth feature
MT5 features Market Depth, enabling you to see the best bids and offers for a particular asset. It tells you the security's market liquidity, and the number of standing buy and sell orders at different price levels. A greater market depth means that the chances of significant trades getting affected by minor price movements are lower.
Accurate fundamental and technical analysis
MT5 offers several advanced tools for fundamental and technical analysis. MT5 also provides inbuilt advanced reports for analysing trading activities quickly. The reports can track initial and final values of the instruments. It can also forecast price movements with minimal deviation.
With automated trading, MT5 can trade positions on your behalf and execute trades even when your machine is off. By using the power of automation, MT5 allows you to process extensive information and multiple orders quicker with little to no intervention from your end.
Top MetaTrader 5 Indicators
Trend indicators are used to identify trends in the markets and could help forecast future prices.
An Envelope is formed by two Moving Averages, one shifting upward and the other shifting downward. This trend indicator shows the lower and upper margins of a security's price range.
The Moving Average trend indicator indicates the mean price value of the security in a specific time.
Standard Deviation depicts the market volatility value of the security. It shows the price movement fluctuations. If its value is high, the market is volatile.
Bollinger Bands are trend indicators that showcase the market price volatility of a security over a period. The bands widen when the market is volatile and contract when it is less volatile.
Average Directional Movement Index (ADX)
The ADX technical indicator helps identify an existing price trend over a period. It helps eliminate false signals to ensure that only significant price movements are considered.
Oscillator indicators depict the price deviation of the security from its average price value. It helps predict potential trend direction in the market.
Average True Range (ATR)
The ATR indicator shows the market's volatility. A higher ATR value could mean that a trend reversal will come soon.
Williams Percent Range (Williams %R)
Williams %R helps identify if an asset is overbought or oversold. When it shows a value between 80% to 100%, it indicates an oversold market. When the values are between 0% to 20%, it shows an overbought market.
The Momentum indicator measures the price changes of a security over a certain period. It can be used in confluence with the Moving Average Convergence Divergence. The Momentum sends a buy signal if it increases, while a sell signal is sent if it decreases.
The DeMarker indicator compares the maximum price of the current period with the maximum price of the previous period. When it falls below 30, it sends a bullish reversal trend signal. If it goes beyond 70, it sends a bearish reversal trend signal.
Commodity Channel Index (CCI)
CCI measures the commodity price's deviation from its average price. When the commodity channel price is higher than the average price, it sends a high price signal. Whereas a low price signal is sent vice versa.
Volume indicators account for the volume of the trade. This can mean the number of trades executed in a specific period or the number of price movements in a particular time interval.
Volume indicates the number of price movements within a period. It consists of a green bar, which is the current bar's volume being more than the previous one, and it has a red bar, which means a smaller volume of trade than the previous one.
On Balance Volume (OBV)
This indicator relates volume to the price change of a security. If the security's price is greater than the OBV movement, it indicates a bull market. A bearish market is suggested if it is lower than the security price.
Money Flow Index (MFI)
MFI measures the buying and selling pressure of an asset through price and volume. It also measures the flow of money in and out of an asset over a certain period.
Accumulation and Distribution (A/D)
A/D is calculated through the changes in volume and prices of a security. When it increases in value, it sends a buy signal and vice versa.
Bill Williams indicators
These indicators are part of the trading system developed by the American trader and author of books in trading psychology, Bill Williams.
A fractal helps detect the market's highest and lowest price movements. An upwards fractal is made of five bars, where two are before and after the highest maximum point of a market. The lowest low is defined by the lowest bar in the middle of the two higher lows before and after the lowest low bar.
The awesome oscillator indicator measures the market momentum with a 34-period Moving Average. When the histogram is above zero, it sends a buy signal. When the histogram is below zero, it sends a sell signal.
Market Facilitation Index
This indicator shows the change in prices of a security. When it moves in the same direction as the volume, it indicates that the price movements have picked up speed. When the two move in opposite directions, it suggests that there is confusion between buyers and sellers.
Gator shows the degree of convergence and divergence in the market. It is indicated by a histogram that plots the distance between the red and green averages. Contracting red bars refers to a slowing trend while expanding green bars indicates that the trend is gaining strength.
This indicator uses three Moving Averages of 5, 8 and 13 periods. The Williams Alligator identifies sudden trends using smoothed Moving Averages.
How do you trade on MT5?
Sign up with a broker like Blueberry Markets. Use the MT5 extension we offer for free.
Download the MT5 platform on your device and log into your account with the credentials you used to sign up.
Open your first position on the Order window. You can choose from multiple order and execution types or let the system place orders on your behalf.
Monitor your positions. You can do this on the Terminal window.
Modify stops, limits, and orders as per your trading objectives through the Terminal window.
Customise charts, indicators, and set up price alerts that update you on market prices.
View trade history from your Terminal window and download trade reports with detailed information on your trades and account summary.
Automate your trades with MT5
Blueberry Markets offers free access to the MT5 platform.
Place your trades automatically and view several charts and tools with our industry-standard MT5 platform.
Sign up for an account today.
Frequently Asked Questions
How do you register on MT5?
You can register by selecting 'Open a real account' from the MT5 menu and find your broker in the drop-down list. Mention your personal details, attach the required identity verification documents and the bank account statement to start with the registration process.
How do you find a broker for MT5?
To find your ideal broker, research the top MT5 brokers in your region. Blueberry Markets is a regulated broker that gives you free access to MT5.
How do you use an MT5 demo account?
You can open a demo account by selecting a server and mentioning your registration data. After the account is opened, you practice trading in a live market on the platform.
What is the difference between MT4 and MT5?
MT4 is designed for CFD Forex-based instruments. However, MT5 deals with centralised and decentralised markets—covering Futures, Stocks, Cryptocurrencies, and Forex.
Habits of Forex Traders
Forex trading requires discipline, focus, and a strong understanding of market trends.
Forex Trading Opportunities When Markets are Closed over Weekends
The forex market can be operated 24/7 Monday to Friday.
How to Calculate Forex Position Sizing
Each trader in the forex market defines their position size before moving forward with a trade.
Understanding Forex Risk Management
The forex market is the most liquid and largest market in the world. However, like any other financial market, the forex market can also be risky during times of high volatility.
Hedging in Forex: How to Hedge Currency Risk
Forex hedging or currency hedging allows you to open multiple trade positions to offset any possible currency risk associated with your current position
What Is PIP in forex trading?
PIPs are essential in forex as they tell the traders about the size of profits or losses that can be made from a particular currency pair.
What Is Gap Trading?
Gaps in the Forex market help traders identify price movement clues, entry and exit signals, and trend reversals.
Top Swing Trading Indicators
Swing trading is all about profiting from market swings. It is a popular speculative strategy where traders tend to buy and hold their assets hoping to profit from expected market movement.
What are Support and Resistance Levels
Support and resistance levels in the Forex market allow traders to understand the market direction and predict future prices to consider in making trade decisions.
MT4 vs MT5: Which is Better?
MetaTrader is one of the most popular online trading platforms used globally and its two main versions are MetaTrader 4 and MetaTrader 5. But between MT4 and MT5, which is one best for you?
What is Forex?
The Forex market offers high liquidity and margin opportunities for you to trade and potentially profit off of exchange rates of currencies. With a daily volume of more than $6.6 trillion in 2019, it is the largest financial market in the world.
What is Margin trading?
Margin trading is one of the most common derivative strategies used in financial markets. It can also be considered tax-efficient as it allows you to choose the size of your wager and exempts profits earned from stamp duties and taxes.
What is Leverage in Forex
Leverage allows traders to hold large positions in the Forex market with fewer capital. With leverage trading, traders can borrow money from a broker and hold larger positions, which in turn could magnify returns or losses.
How To Set a Stop Loss Order in Forex Trading
A stop loss order is used to prevent extensive losses, especially during severe market dip situations. By placing a stop loss order, you can automatically close your position if the market moves against you.
What is MetaTrader 4: The Complete Guide to MT4
An advanced trading platform, MT4 has become a norm for seasoned Forex traders as it helps them execute their trades even when their machine is off. It comes with a user-friendly interface, numerous technical analysis tools for forecasting market patterns, real-time currency price data, and much more.
What are Long and Short Positions in Forex?
In Forex trading, you can take long or short positions based on expectations of the market rising or falling. Long or buy positions are maintained when traders expect currency pair prices to increase in the future.
What is a Spread in Forex?
A spread is a cost built into the buying and the selling price of all the currency pairs. In most cases, Forex spreads depend on your Forex broker.
What is a Currency Pair in Forex?
The foreign exchange (Forex) market is the largest financial market in the world. With a daily average volume of about $6.6 trillion and worth over $2.4 quadrillion as of 2021, Forex is a decentralised global market for trading currencies.
How do you trade forex?
Many people want to get into Forex trading and make quick profits, but only a few even know how to start. While trading Forex online has now become easier than ever because of powerful platforms like Blueberry Markets, it can still feel incredibly overwhelming to get started with it.
When Can You Trade Forex?
In case you are wondering is Forex trading profitable, the short answer is yes. But many opt for Forex traders to make fast profits since Forex markets are operational 24 hours for five days a week.
Who trades forex?
Major players in the Forex market are financial institutions including commercial banks, central banks, money managers along with hedge funds. Many global corporations also trade in Forex to hedge currency risk.
Why trade forex?
As the largest financial market globally, Forex trading is one of the most popular investment avenues for many. The liquidity and huge trading volume make Forex trading an option worth exploring.
Forex Margin & Leverage
Forex trading usually provides much higher leverage compared to other financial instruments like stocks. This is one of the primary reasons why so many people are attracted to Forex, and more and more people have started to enter the Forex trading market.
Key steps to making your first trade in Forex
Making your first trade in Forex successfully requires in-depth knowledge about trading basics and Forex trading strategies. The learning curve to trading currencies can seem overwhelming and complex, but when you have the right information by your side, it can make the entire process all the more easier.
How is Forex regulated?
There are several Forex brokers in the Forex market, and amidst those thousands of Forex brokers, it can become nothing less than challenging for traders to find the best brokers.
When you hold a currency spot position overnight, the interest you either earn or pay is the rollover amount. Each currency has a different overnight interbank interest rate, and because you trade Forex in pairs, you also deal with two different interest rates.
Tips for Forex trading beginners
In terms of trading volume, the Forex market is the largest financial market in the world. It is also the only financial market that operates round the clock every day.
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