How to use MT4 platform to trade Binary Options
Metatrader4 (or simply MT4) is a trading platform which’s maintained and developed over the years by MetaQuotes. The main purpose of MT4 is for trading and charting in Binary Options, Foreign Exchange market ( Forex or FX market) or futures markets. You could download MT4 follow this link to download MT4. MT4 basically provides all the tools and resources you needed to become a successful Binary Options traders. You are able to watch, analyze, perform charting with various financial indicators as well as place real-time online trade on the MT4 platform. In this tutorial, I’ll guide you basic steps to master the MT4 platform and how to use it to it maximum capability with the aim to become a successful Binary Options trader.
Setting up MT4
For the basic download, setting up and perform simply navigation, please watch this video tutorial.
MT4 Navigation/Main Window
When you first opening MT4, after successfully install, you’ll see MT4 screen with the default 4 currency pairs. Toolbar are located at the top of the screen. On the left hand side, below the Toolbar are the “Market Watch” window, where you could watches the live quotes of different currency pairs. The live quotes contain live bid and ask prices of the specific currency. All are happened in real-time. The two tabs you see at the bottom of the Market Watch are the symbols and the Tick Chart. The Tick Chart is used to watch the tick activities of that certain currency pair.
Right below the “Market Watch” window, you could see the Navigator window, where you could see various options from your account to the financial indicators, to “Expert Advisors”, the custom made indicators or Scripts. Every tool in this window, you are able to customize it for your own preference if you know a little bit of programming. That’s basically the major advantage of MT4, where traders could build their own trading program.
Below the Navigator window and at the bottom of the chart, you could see the “Terminal” where you could manage your trades, manage your account, refer to trade history as well as watching news in real time. “Trade” tab showing your current balance and your currently running trades. “Account history” shows your past trades. “News” tab show real-time news where you can refer to when you trade. You are expected to click and familiarize to all tabs because it’s quite obvious what its functions are.
MT4 Charts and Settings
You can customize your charts with your own preferences. That’s probably the main reason that a lot traders like MT4. Just right-click and select “Properties”, there you go; you could test various colors, ask like color, background color etc. In the Common tab, you are able to check whether you would like certain features, like whether do you want volume to appear, whether you want to show ask line, show period separators etc.
Once you’ve found for yourself a good looking chart, you can save it as a template, so that the next time, when you open a new chart, you don’t have to go to the customization process again. You just have to choose that template you’ve saved, then you’ll see an exact same set-up. Click on the Template icon in the top toolbar, then give the template a name, then click “save template”. This new template now could be able to apply for any other charts.
You can also select your preferred charting on how the candle looks like. You could choose candlesticks or bar-chart or line chart. It’s totally up to your preferences. For me, I personally like the candlesticks chart because the candle itself can reveal a lot about price action. This’s another topic worth discussing regarding to candlesticks Binary Options strategy.
Another important feature of MT4 charting platform is its indicators. Indicators are various financial technical analysis which can be added to the currency chart to aid traders to make trading decision. At the top toolbar, click on “Add Indicators” so that you can view list of available indicators. You could watch how is it look like in the figure below. Indicators are categorized under different types, like volumes indicators, oscillators indicators or trends indicators. Once you select an indicator, you are able to change its values depend on your preferences.
MT4 Chart Size
Under the chart windows, right-click on the currencies pair chart, you are able to close, minimize or maximize a chart window.
If you prefer a clearer views or a different views of the chart, you could choose the zoom function. At the top toolbar, you’ll find the zoom in and zoom out icons, which can be clicked repeatedly to make the chart much bigger or way smaller.
MT4 Time Frames
A very important feature of a currency chart is its timeframe. You could select your desired timeframe right at the toolbar, as show in the figure below. The icon represents the respective timeframe, M1 represent a 1 minute timeframe for example. Similarly, we could see that M5 represent 5 minutes timeframe, H1 represents 1 hour. D1 represents 1 day and M1 represents 1 month. A lot of traders need to watch a specific trading instrument in multiple timeframe because it gives them more information. You can switch back and forth between different timeframe just by change your desired timeframe from a click of a button.
MT4 Drawing Tools
You are able to draw on the chart by various drawing tools. It’s absolutely necessary because it’s believed that the currency pairs respect certain technical analysis like trendlines, channels or Fibonacci Retracements. Additional drawing tools can be found when you right-click on the drawing tools tab and then press “Customize…”. You’ll now see a whole list of a lot of tools.
MT4 Connection Status
The absolute bottom, on the right corner of the MT4 screen, you’ll see the a status bar showing the connection status of your MT4 to the server. Ideally the higher your bit rate, the better because it shows that your data is transaction at very good speed. Red bars would indicate that there’s no connection, it’ll show no connection there. Otherwise, green bars would indicate there’s connection and depend on your bit rate, it shows whether the connection is stable or not. Over 100/1 kb is consider a decent bit rate.
That comes to our conclusion for this tutorial. I hope you’ve found it helpful. If you have any question, don’t hesitate to comment below.MT4 can be used as an external standard-alone charting software for any binary options broker. But I recommend 24Option or TradeRush, read 24option reviews and traderush reviews for more information.
MT4 is mainly used to trade Forex, for Forex brokers, it’s important to read reviews first before trading with anyone. I recommend Forex Brokers Reviews for real users’ reviews.