The MetaTrader 5 trading terminal has been around for a long time and many indicators have been created for it. Many experts advise to download metatrader 5 for mac, because it is there that the opportunity for potential earnings opens up.
The platform offers traders both pre-existing standard algorithms and the ability to download a third-party solution created for this version, including volume indicators. Let’s consider both types and tell you how you can add an indicator to the terminal in order to use it in trading in the future.
Standard indicators in the terminal
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Initially, the program suggests using a large list of indicators, among them there are also volume ones. They are highlighted in a separate category, you can find through the general list of indicators. The simplest and most convenient algorithm to use is the simple vertical volumes available by default. They are displayed as a chart below the chart, where one bar corresponds to one column of volumes.
The height of the bar shows tick volumes. This is a type of volume that does not count contracts traded on an instrument, but price fluctuations. For example, on the chart of the stock «Company 1» there is a sharp increase in trading volumes every time the Asian session opens, similarly it happens with the shares of «Company 2» in the American session. If you switch to small periods, then in the first 10-15 minutes of trading there will be very high price activity. All these fluctuations add up and form the final indicator, which reflects the indicator of volumes for MT5.
We list the main indicators that have already become classics in addition to Volumes, described above:
- Money Flow Index;
- On Balance Volume.
All of them are also calculated using tick volumes. This is the best option for the forex market, as it is decentralized. But as for stocks or commodities, it is best to use the real volumes that are available on the exchanges. To do this, you will have to connect other indicators that are not in the trading terminal.
Users have created a lot of different analysis algorithms, among them there are volume indicators for MT5. One of the good examples is Better Volume, the functionality of which is extended compared to the standard indicator. There are other solutions that will help in the question of how to buy stocks based on volume analysis, but they receive data from third-party servers or from exchanges. This is relevant in the case of CFD trading.
Adding a custom indicator to the trading terminal is very simple, you need to follow the path – the data-MQL-Indicators directory, and simply copy the downloaded indicator to the opened folder. After restarting the MT, the indicator will appear in the list of custom ones, open it and add it to the chart.
Don’t forget that MT4 and MT5 have different programming languages and, accordingly, different indicators.