Why Switching To Meta Trader 5 Could Improve Your Trading
What is the main difference between MT4 and MT5
Meta Trader is one of the most popular trading platforms used by traders across the world, with MT4 by far the most popular choice. So why choose to use MT5 instead of MT4?
To look at, both platforms are very similar indeed, but what separates the two apart is that Meta Trader 5 offers the ability to view many more time frames. Where MT4 only offers the standard 1hr, 4hr and daily time frames, MT5 offers the 1hr, 2hr, 3hr, 4hr, 6hr, 8hr and 12hr and daily time frames.
The increased number of time frames can be very advantageous for a price action trader, especially if you still hold a day job. Allowing more opportunities to find trades setups.
Why bother with different time frames
Well, trading is a very personal thing and some traders may find they suit a certain time frame better. I try to get traders to begin their trading career from the daily charts. The main reason being to get all new traders to learn how to become patient and disciplined enough to see the Forex markets correctly and start trading from the very best areas.
However, with the daily time frame comes one problem a lot of traders struggle with and this is the low number of trades that are produced. A good compromise would be to consider the 8hr time frame which in turn should produce more trade setups but still keeping the trader using the more accurate higher time frames.
Increase the number of trade setups
By still using the daily charts to mark our key levels and converting to Meta Trader 5 we gain more options to go hunting for trades at those key areas.
The table below highlights the differences:
Local Time Closes (UK)
6am, 10am, 2pm, 6pm and 10pm
4am, 10am, 4pm and 10pm
6am, 2pm and 10pm
10am and 10pm
Clearly using Meta Trader 5 opens up new options to find more potential trade setups. Yes, there is an option on Meta Trader 4 to use a candle blending tool to blend two time frames together, like say two 4hr charts to make an 8hr chart. However, the biggest downside to this is how time consuming a task it can become, using the blending tool. Meta Trader 5 solves this issue and makes it very easy to switch between time frames with just one click.
An example, of where these extra time frames can come in useful, is if say on a 4hr chart a bearish engulfing bar formed at 2pm (UK time) at a key level but annoyingly closed just too bullish to be considered a valid bearish engulfing bar setup. Using MT% we could follow this onto the 6hr chart (at 4pm UK time) and see if price manages to push on lower to form a valid bearish engulfing bar on the 6hr charts and then allowing us to enter the trade.
Traders found worldwide
As traders can be found across the world, the ability to access certain time periods can be awkward for some, due to different time zones. Meta Trader 5 can ease this complication by offering more time frames to make trading more accessible.
Download MT5 and have a go!!
Why not take up the challenge and download a demo version of Meta Trader 5 and see for yourself.
Every trader will eventually find their own favourite time frame, it maybe the 6hr or the 4hr, it all depends on your personality. If I could only pick one time frame to trade from, I would probably favour the 4hr time frame but the 8hr would be a very close second.
Other traders may adore the consistency of the daily time frame and how it allows trading to be fitted in around their day jobs. At the end of the day there is no right or wrong choice, it is just down to personal preference.
Meta Trader 5 just offers more choices, and that can be no bad thing, especially if time is limited.
The biggest hurdle to converting over to Meta Trader 5 is actually finding a broker who offers MT5 with New York Close candles.
I personally use MT5 from Roboforex, as it offers the New York Close charts I want. The link below will take you there http://www.roboforex.com/trade-conditions/metatrader5-mt5/
N.B. this MT5 platform from Roboforex is purely used to search and find new trades, I use another broker to place the trades with.
Tell me what you think, maybe you have tried Meta Trader 5 and found it useful? Or maybe you know of more brokers who offer New York Close charts with MT5. Every comment is welcome and appreciated.