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Choosing the best time for opening positions can be quite a headache in the Forex trading market. At the same time, it is quite important.
This is especially true for short-term traders. Those using these short-term strategies have very little room for making any mistakes. Thus, they must be well-focused when deciding when the best time is for opening and closing positions.
Thankfully, there is an indicator that you can use for identifying the best time for opening positions in the market. It is called a candle timer and allows you to focus on individual candles on the candlestick chart. But, exactly how does it work? Follow our guide and see how you can use the MT4 Candle Timer Indicator for the best results in your Forex trading.
“I believe in analysis and not forecasting.” - Nicolas Darvas
The Forex trading market is known for its volatility. This means that while the price can be at one point right now, it can change drastically in just a few minutes. Because prices can change so suddenly, you can end up with big losses, or big wins. This is where the importance of the candlestick time indicator comes in.
This indicator can be used by Forex traders to ensure they are implementing orders at the right time and do not miss out on market opportunities. It can also help them better follow market trends. This indicator is one of the best tools for MT4 as it helps to keep track of time and ensure that you are making moves at the right moment.
When it comes to Forex trading, there are different types of strategies market participants are using. While there are some traders who prefer to open one position and let it be open for several days, weeks, or even months, there are others who want to make quick profits by opening and closing positions on the same day. Some prefer the Forex arbitrage strategy and some enjoy trading with a 1-minute scalping strat. Whatever the case may be, you need a good tool to help you find the perfect entry and exit positions.
Short-term trading strategies usually last anywhere from a few minutes to a few hours. When using short-term trading strategies, it is very important for traders to know exactly when to open and close their positions, in order to make profits.
Not only do they need to know when to open positions, but they also must be very quick and specific when opening a new order. The reason for this is that Forex currency pairs tend to be quite volatile and prices can change in the blink of an eye.
Also known as the candle count indicator, it gives traders the opportunity to see the remaining time of the current timeframe they are using. It also helps traders identify when the new timeframe will start.
Contrary to the popular belief, this indicator, although specifically created and used on candlestick charts, can in fact so be used for other types of charts as well. The way it works is very simple.
It basically tracks the elapsed time of the current candle and gives traders the exact minutes and seconds left until the new candle starts. Although there are many traders who are using it, the MT4 candlestick timer is most useful for those who are employing short-term trading strategies.
For such traders, every second counts. If you are a short-term trader, you need to keep an eye on every single pip movement and be ready to react. By using this indicator, traders can know exactly when the next timeframe begins and make better trading decisions based on this knowledge.
In the majority of cases, the MT4 countdown timer does not come pre-installed with the trading platform. The majority of MT4 versions offer traders many different types of indicators, but this one is rarely on the default list. Still, this indicator is among some of the most popular trading indicators available in the market today.
If you are one of those traders who want to use this indicator, the good news is that it is quite easy to get the Forex candle time indicator set up. There are numerous forums and websites online where people are posting indicators that they have created. This specific indicator can also be found on the MetaTrader 4 website.
Traders should note that there are different versions of the candle timer indicator created by different providers. However, at the end of the day, they are the same in terms of how they function. All of them are doing the countdown for the next candle to occur in the chart. Simple as that.
Once you download the version of the indicator that you like the most, you can start installing the indicator on your MetaTrader 4 platform.
In most cases, indicators are available as either a ".zip" or ".rar" file and will require you to extract the files within the MetaTrader 4 folder on your computer (where the trading platform is installed).
After you do that, do not forget to restart your MetaTrader 4 in order for the changes to take effect. Once the trading platform is on again, go to the “Navigator”, choose “Indicators”, and look for your new indicator on the list. Select the "Candle Timer Indicator" and your MetaTrader 4 software will be ready to go.
Now you can go ahead and change the indicator's settings according to your preferences, so it looks exactly the way you want it. The color and location can be changed, as well as the timeframes and the types of notifications you want to receive from the indicator.
While there are many Forex traders who are using this indicator by itself, there are many others who believe that it is better to pair it with other available Forex trading indicators to ensure the highest rate of accuracy and success.
As we have mentioned earlier, the MT4 candle countdown is the best indicator to use for short-term trading strategies. While the indicator can be a great help for traders, it is very important to note that using it on its own might not be the best thing to do. It can be quite hard to judge the situation of the market based on statistics from just one indicator.
It can be very helpful for traders to employ other indicators alongside this one to better judge the general market conditions and decide which positions to open. When combined with other indicators available in the market, the MT4 candle timer indicator can be a huge help.
The most popular indicator to use with the MT4 candle timer indicator is considered to be Bollinger Bands. These two indicators go really well together and provide traders with all the necessary information they might need to make profitable trades.
Bollinger Bands allow traders to track the price movements in the market and determine how volatile it is. The Bollinger Bands indicator is made up of three lines. The middle band is the simple moving average, and the bottom and upper bands are standard deviations.
One way of interpreting this indicator is that when the two bands are too close to the middle one, the price tends to break out of the bands. The MT4 candle countdown timer can be very helpful while using this indicator, as it can determine the exact moment that the price might change. This ensures that traders do not miss out on any profitable opportunities.
Yes, MetaTrader 4 can use a Forex candle timer. However, the MetaTrader 4 platform does not come with the indicator pre-installed. Traders should download this indicator separately and install it manually.
There are many different options that traders have when downloading the candle timer indicator. It is available on numerous websites and finding it is not an issue.
The MT4 candle timer indicator should be directly installed in the same folder where MetaTrader 4 is installed. After this, you should restart the trading platform. Once the platform is turned on again, you can go to the Navigator menu, then Indicators, and you will be able to add it to your chart by double-clicking it. You can also change the settings of the indicator according to your individual preferences.
The most popular indicator used with the MT4 Candle Timer Indicator is Bollinger Bands. While the timer indicator is very popular in the Forex trading market, on its own, it is not able to give traders enough information about market conditions.