Best MetaTrader 5 Indicators for Beginner Traders

There are numerous indicators available for MT5
While there are some indicators that you should purchase, there also are many free MetaTrader 5 indicators
MT5 indicators are used to detect the trends in the market
Using MT5 Forex indicators makes trading easier

What Are MT5 Indicators?

MetaTrader 5 Indicators Explained: MT5 technical indicators are software created to help traders identify market trends. Forex trading technical indicators help traders predict the future price movements in the market according to the market history. Many things can be considered indicators. However, in most cases, Forex indicators are custom pieces of software that can be applied to the trading platform. There are numerous Forex MetaTrader 5 indicators available in the market, making trading easier for both experienced and beginner traders. Thanks to the Forex trading indicators, you can better identify trends in the market and understand when and how to open correct trades. Among the Forex trading indicators available on MetaTrader 5, you can find both paid and free indicators. MetaTrader 5 is a very popular trading platform worldwide, and there are millions of people who are using it. Because of such popularity, many people are creating indicators suitable for this platform. That said, MT5 also comes with pre-installed trading indicators. In most cases, you can find dozens of indicators available on the trading platform. Additionally, if you have enough skills, you can create an indicator of your own. Finding indicators online is not hard either. There are numerous forums and websites online where people sell indicators or give them out for free. So, let’s discuss the best MetaTrader 5 indicators and see how they work.

What Are The Best MT5 Indicators?

As we have already said, there are hundreds of indicators available online. These indicators help traders better understand the market trends and tell how the prices could change according to the market’s historical data. However, not all indicators can be suitable for you. According to your trading style and the strategy that you are using, some might be useless. Because of this, it is very important to find the Forex trading indicators that fit your trading style and the asset that you are trading. Also, what many people do is that they are using technical indicators to confirm the direction market could take. This strategy is used very frequently to ensure that the positions opened by traders are accurate. Using technical indicators in conjunction with fundamental analysis can be very rewarding for traders to understand the market from different angles. Among some of the best MT5 indicators you can find:

AMA
MACD
Bollinger Bands
Williams’ Percent Range

Let’s discuss the above-mentioned indicators and see how they can be used for detecting market trends.

AMA

While talking about MetaTrader 5 best indicators, one of the first indicators that come to mind is the Adaptive Moving Average, known as AMA. This technical indicator is very popular among traders and is used very frequently for conducting a moving average in the market. In general, moving averages are some of the most used technical indicators in the Forex trading market. These indicators are used to determine the market trends and understand more about the potential reversal points in the trading market. In the Forex trading market, the two most used averages are the exponential and simple moving average. Simply put, AMA uses the recent price movement history in the market to understand the possible changes in the market. A very important thing about this indicator is that it considers the moving average and the volatility in the market. Added to your chart, this indicator can be used to find different types of trends in the market and spot the most essential points in the market. It is a very easy and straightforward indicator to use and has multiple parameters to make it more suitable for your trading style and strategy. Below, you can see the AMA indicator added to the MetaTrader 5 EUR/USD chart. The AMA indicator is shown with a red line.

MACD

MACD, short for Moving Average Convergence/Divergence, is one of the most popular MT5 Forex indicators. This trend-following dynamic indicator is used by millions of traders every day. It offers very useful information about the correlation between two moving averages of a price of a certain currency pair. This MACD indicator shows the difference between a 26-period and 12-period Exponential Moving Averages, known as EMA. In most cases, people use MACD in three different ways. They are crossovers, overbought/oversold conditions, and divergences. A very simple rule that many follow while using this indicator is to sell when the MACD falls below the signal line. Very frequently, MACD is displayed with a histogram. This shows the distance between the MACD and the signal line. This can help you understand when a certain momentum is high or low. In most cases, MetaTrader 5 comes with this indicator pre-installed. MACD is one of the most popular MetaTrader 5 trend indicators and is used by millions of traders worldwide.

You can see how the MACD indicator looks on the MT5 chart above. The MACD is added to the GBP/USD candlestick chart and is shown below the candles. To add this indicator to your chart, you should go to the indicators section of your trading platform, then click Oscillators, scroll down and double-click MACD. Then, you can set your preferred setting, such as colors, for example, and the indicator will be added to your chart.

Bollinger Bands

When discussing MetaTrader 5 indicators list, it is impossible to continue without talking about one of the most popular trading indicators worldwide, called Bollinger Bands. This indicator can be handy for traders to determine overbought and oversold levels and can be used as a trend-following tool. By using Bollinger bands, you can better monitor the breakouts in the market. One of the main reasons for its popularity is that it is a straightforward trading tool, and can be very useful for experienced and retail traders. Bollinger Bands are among the most used MT5 trend indicators.

The USD/JPY chart above shows how the Bollinger Bands indicator looks applied on a candlestick chart on MT5. As you can tell, when the market is stable and there is no big movement, the trends are closer together, however, once the activity in the market increases, the lines, in the case of the indicator called bands, move further from each other. In most cases, just lik