Table of contents:
- 1 Binary Options Brokers with MT4/MT5
- 1.1 What is the MT4/MT5?
- 1.2 What are the benefits of MetaTrader 4 when trading binary options?
- 1.3 Start MetaTrader 4
- 1.4 MT4 Account Management and News
- 1.5 MT4/5 Charts
- 1.6 MetaTrader (MT4) template for binary options
- 1.7 MT4 Indicators for binary options
- 1.8 Conclusion: Use MetaTrader 4 to get started in chart analysis
Since some Binary Brokers only offer rather rudimentary charts, many traders use external charting software such as MT4/MT5 (MetaTrader 4/5). This allows for sufficient technical chart analysis to be performed. This would be one way to deal with the problem of too simple charts. Another, the more recommendable variant is to have an account with one of those brokers who already include professional charts on their platforms. IQ Option and Deriv should be mentioned here. These professional charts offer similar possibilities of analysis using indicators like MetaTrader
Binary Options Brokers with MT4/MT5
Since Binary Options have been banned in Europe for private investors since 2 July 2018, traders must use brokers that are regulated and licensed outside the EU. None of these currently use MT4 or MT5.
We recommend a free account with a forex broker to use the MT4/MT5 as external charting software.
Also, recommended Binary Options Brokers to trade with:
What is the MT4/MT5?
MetaTrader 4/5 is standard trading software, which has been continuously developed and extended for years by the company MetaQuotes Software Corp. The focus is on forex, futures, commodity, and index trading, but the software can also be used for analysis purposes for binary options. MT4 enables the trader to observe many indicators in order to perform chart technical analysis.
Key facts about MetaTrader 4/5 are:
- Up to 200 technical indicators, depending on the broker usually between 30 and 70 available
- Very many analysis approaches due to the possible combinations of indicators
- Display of up to ten charts simultaneously
- Construction of own indicators via the script language MQL4/5 possible
- Possibility to program Expert Advisors (automatic trading programs)
- Integrated signals and financial news
What are the benefits of MetaTrader 4 when trading binary options?
Even for successful trading with Binary Options, there must be clues that can be derived mainly from technical analysis. This is what MetaTrader 4 is for. The included indicators show where the price could move in the near future with a certain probability. The technical chart analysis shows trends and trend changes, significant highs, and lows, volatility, momentum, supports, and resistances. MetaTrader is a tool that helps you capture this relevant information and use it for trading. The classic trading platforms of binary brokers are not designed for this.
Start MetaTrader 4
The MT4/5 is now available in a browser-based version, but traders can also download it. Four standard currency pairs are displayed on the home screen. There is a toolbar at the top of the screen, with “Market Watch” on the lower left. There you can see the current prices in real-time with bid and ask prices in the corresponding currency. The Market Watch shows the two tabs “Symbols” and “Tick Chart” at its bottom edge.
You can use the latter to monitor the tick development of a selected currency pair. Under “Market Watch” there is tree navigation, which allows you to configure individual views for your account or for the indicators. The views and functions can be adapted via script with little programming knowledge. This is one of the great advantages of MT4: Every trader builds his own individual trading solution.
MT4 Account Management and News
A “terminal” appears under the Navigator window, which allows you to manage your own trades and account. Of course, this is not relevant for binary traders who use the MT4/5 only for chart analysis. But here, current financial news will also appear in real-time under the “News” tab. Those who execute trades in the MT4/5 receive news directly related to the traded assets.
The MT4/5 allows you to customize the chart displays according to your needs. By clicking on the right mouse button, “Properties” will appear, now the trader can configure different color settings. In the “General” tab, other functions can be set up, such as the display of trading volume, resistance, support, and time intervals. This gives a trader his own individual view of all charts and trades. A chart window can also be resized.
MetaTrader (MT4) template for binary options
You can save the configuration of a particular chart as a template. If you perform the technical analysis for binary options, candlesticks are the best choice. It is important to include indicators, which can be selected in the upper toolbar. These are sorted by type, including “Volume Indicators”, “Oscillators” and “Trend Indicators”. Each of these categories has a number of individual indicators. Besides the indicators, the time intervals are important. They are selected from the toolbar. M1 would be the interval of one minute, M5 is five minutes, H1 is an hour, D1 is a day, M1 is a month. Drawing tools can also be used, for example, to draw auxiliary lines manually.
MT4 Indicators for binary options
The following MetaTrader indicators are well suited for trading Binary Options:
- BB MACD: This is a version of MACD (Moving Average Convergence/Divergence) adapted to MT4 and MT5. Binary traders determine the beginning and end of a trend as well as the strength of trends. If the two MACD lines diverge vary widely, the trend is very strong.
- RSI (Relative Strength Index according to Welles Wilder): This indicator has been around since 1978 and is used very often in technical analysis. It relates the trend movements of the underlying asset to the time course.
- Bollinger Bands were developed after 1980 by John Bollinger. They frame a moving average, which they basically update because the hypothesis is that the future price will tend to be closer to the average of the existing price or trend. They are based on assumptions of statistical normal distribution.
- Beginner: This special indicator was developed for the MetaTrader (versions MT4 and MT5), it shows extreme values and thus reveals support and resistance. The trader can thus see where the current trend channel runs.
- Moving Average Candlesticks: Here the MetaTrader developers have brought the classic moving average into the form of candlesticks.
- CCI Arrows: Again, this is a MetaTrader special development based on the Commodity Channel Index. The CCI displays the “market noise” and generates trading signals from it, the CCI Arrows even draws them into the chart with red and blue arrows – an excellent template for a binary call or put options.
Conclusion: Use MetaTrader 4 to get started in chart analysis
With MT4/5 you can analyze charts as comprehensively as possible. This is incredibly useful for Binary Options trading, even though using the MT4/5 externally as a charting software may seem a little uncomfortable at first. The technical chart analysis greatly increases the chances of winning every time you trade.
However, Binary Options Brokers who allow technical chart analysis using professional charts directly on their own platform are of course preferable. Read more in our article: “The best professional chart for binary options“.
Read my other articles about Binary Options:
- 15 Rules for Binay Options – Tips & Tricks
- 5 best Binary Options Broker 2020 – Review & Comparison
- Are Binary Options a gamble?
- Are Binary Options a scam?
- Are Binary Options Robots a Scam? – Honest review
- Best Binary Options App – Comparison & Review
- Binary Option Markets
- Binary Options – Call and Put
- Binary Options – Range Options – Boundary Options
- Binary Options – Touch Options
- Binary Options 60 seconds Trading Strategy & Tips
- Binary Options Bollinger Bands Strategy
- Binary Options commodities trading
- Binary Options demo account – Recommended For Beginners
- Binary Options Money Management Strategy
- Binary Options News Trading
- Binary Options regulation – Why is it important?
- Binary Options review – Critic and warning
- Binary Options RSI Strategy
- Binary Options trend following strategy
- Binary Options volatility strategy
- Binary Options vs. CFD Trading – Which one is better?
- Binary Options vs. classic options
- Binary Options vs. Forex Trading – Which one is better?
- Chart analysis for Binary Options
- Forex Trading with Binary Options
- Hedging Binary Options: Can You Hedge Against Losses?
- How risky are binary options?
- How to avoid Binary Options Scam Brokers
- How to trade Binary Options – Trading Tutorial
- How to Trade Stocks with Binary Options – Tutorial
- Is Binary Options Trading safe? – Consumer protection
- Learn to read Binary Options Candle Sticks
- Trade Binary Options with MetaTrader
- Trade Pivot Points with Binary Options
- Warning about Binary Options – A form of betting
- What are Binary Options?
- Why Binary Options Signals are a scam