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MetaTrader 5, often abbreviated as MT5, stands as the advanced iteration of the widely used MetaTrader 4 platform developed by Metacots. This versatile multi-asset platform caters well to beginners aiming to enhance their trading journey through a diverse array of state-of-the-art features and tools that prove highly functional and efficient.

In the realm of online financial asset trading, market analysis plays a pivotal role. The significance of technical analysis lies in its ability to forecast probable future price trends. In this post, we will discuss MetaTrader 5 technical indicators and how to use them to analyze market trends. 

Understanding Market Trends 

Market trends refer to the general direction in which the price of a financial asset or market is moving over a specified period of time. These trends can be categorized into three main types:

1. Uptrend

In an uptrend, the prices of assets are generally rising over time. Higher highs and higher lows characterize this trend. It indicates a bullish sentiment, where buyers are more active than sellers.

2. Downtrend

Conversely, a downtrend is marked by a general decline in asset prices. Lower highs and lower lows define this trend. It indicates a bearish sentiment, where sellers are more active than buyers.

3. Sideways or Range-bound

In a sideways or range-bound trend, prices fluctuate within a relatively narrow range. There’s no clear upward or downward movement. This can happen when there’s a balance between buying and selling pressure.

Market trends are crucial for traders and investors as they provide valuable information about the potential future direction of prices. Understanding and analyzing trends can help traders make informed decisions about when to buy or sell assets. It’s important to note that trends can occur on different timeframes, from short-term intraday trends to long-term trends spanning months or even years.

Technical Indicators 

An indicator is the most important tool for technical analysis. Such indicators can be set to operate automatically in order to detect different patterns in the price dynamics of stocks, currencies and other financial assets. Based on this information, traders can assume further price movement and adjust their strategy accordingly. 

Many technical indicators have been developed since the creation of financial markets. The most popular indicators are included in the MetaTrader 5 trading platform. For more convenience, the indicators are divided into several groups: Trend indicators, Oscillators, Volume indicators and Bill William’s tools.

Most of the technical indicators provide the flexibility to adapt the tools to any specific task. You can control both analytical parameters and settings which are responsible for the indicators’ results and appearance. For example, you may change the calculation period of the Moving Average as well as adjust the colour, width and line type.

Indicators can be added to the price charts or to a separate sub-window with an individual scale of values. Moreover, one indicator can be applied over another one. For example, you may apply a Moving Average on DeMarker and obtain a line of averaged values.

In general, MetaTrader 5 offers traders an elaborate set of tools for comprehensive technical analysis. Even the most demanding traders can use additional technical indicators. Market and Code Base feature thousands of indicators that can help to expand further analytical capabilities. Download for free from the Code Base, and purchase or rent from the MetaTrader Market. You can obtain cutting-edge tools for technical analysis of any complexity level straight from the platform!

How to Analyze Market Trends with MetaTrader 5 Technical Indicators

Analyzing market trends using technical indicators in MetaTrader 5 can provide valuable insights for traders. Here’s a step-by-step guide:

Step 1: Open MetaTrader 5 and Select a Chart

1. Launch MetaTrader 5 and log in to your trading account.

2. Choose a currency pair or asset you want to analyze by opening a chart. Right-click on the desired asset in the Market Watch panel and select “Chart Window.”

Step 2: Add Technical Indicators

1. Click on the “Insert” menu at the top of the platform.

2. Select “Indicators” and choose the category that fits the type of analysis you want to perform (e.g., Oscillators, Trend, Volume, etc.).

Step 3: Understand Common Technical Indicators

Here are some popular indicators and their purposes:

  1. Moving Averages
  • Simple Moving Average (SMA): Smooth out price data to identify trends.
  • Exponential Moving Average (EMA): Gives more weight to recent prices, reacting faster to changes.
  1. Relative Strength Index (RSI)

Measures the speed and change of price movements, indicating overbought or oversold conditions.

  1. Moving Average Convergence Divergence (MACD)

Consists of two moving averages and a histogram, providing insights into trend strength and potential reversals.

  1. Bollinger Bands

Combines a moving average with upper and lower bands representing volatility levels.

  1. Stochastic Oscillator

 Identifies overbought and oversold conditions, helping to predict potential reversals.

Step 4: Apply and Configure Indicators

1. Double-click on the chosen indicator or drag it onto your chart. A settings window will appear.

2. Adjust parameters if needed (e.g., period, colours, levels) based on your trading strategy and preferences.

3. Click “OK” to apply the indicator to your chart.

Step 5: Interpret Indicator Signals

1. Moving Averages

  • Crossovers: When a shorter moving average crosses above or below a longer one, it may signal a trend change.
  • Slope: The direction of the moving average can indicate the current trend.

2. RSI

  •  Over 70 indicates potentially overbought conditions, suggesting a possible reversal.
  •  Under 30 indicates potentially oversold conditions, suggesting a possible buying opportunity.


  • Signal Line Crossovers: When the MACD line crosses above or below the signal line, it may signal a change in trend.
  • Histogram Strength: The height of the histogram bars shows the strength of the current trend.

4. Bollinger Bands

  • Bollinger Squeeze: When the bands narrow, it may indicate decreased volatility and an impending significant price movement.

5. Stochastic Oscillator

  • Over 80 indicates potentially overbought conditions, suggesting a possible reversal.
  • Under 20 indicates potentially oversold conditions, suggesting a possible buying opportunity.

Step 6: Combine Indicators for Confirmation

Consider using multiple indicators to cross-verify signals. For example, if both RSI and MACD indicate overbought conditions, it could strengthen your conviction.

Step 7: Practice and Monitor

Apply your analysis to historical data or a demo account to gain confidence in your understanding of the indicators. Regularly monitor the markets to refine your skills and adapt to changing conditions.

Remember that no indicator is infallible, and it’s crucial to use them in conjunction with other forms of analysis and risk management techniques. Always consider potential false signals and market context.

The MetaTrader 5 terminal offers a remarkable array of analytical tools, effectively meeting the diverse needs of today’s traders. With the MQL5 development environment and a suite of supplementary services for technical analysis, MetaTrader 5 has significantly elevated the range of analytical capabilities available. Experience it for yourself!

About the Author: Ivandrea Ollero is a writer for Metatrader Platform website and shares insightful tips and tricks about Trading and Forex-related content. She loves to explore the Forex Market in her free time and also writes content about business, lifestyle, health, and more.

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Ivandrea Ollero

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