Forex trading is a constant analysis of news as well as work with charts and a variety of trading tools. The latter is presented in the form of indicators, scripts, and advisers - you can read info about them in the "Catalog of robots" section on our website.
To work with assistants, you do not need to have specialized knowledge in trading or programming. You can download free of charge any interesting technical analysis tool on the site, install it to MT4 or MT5, and start working immediately. In the MTDownloads library, you will find the latest versions of more than 20,000 most famous trading robots.
If you have enough knowledge in the field of software development, you can create an application in MQL4. Compilers are useful for this purpose, so you can also download them for free on the MTD website.
Assistance of the Forex robots
The use of technical tools will be an excellent addition to the trade. No matter how long you are a member of Forex, appropriately selected robots can significantly simplify the analysis of the market and reduce the time of getting a profit. Also, advanced advisers can independently open/close orders and analyze transactions without the intervention of a trader.
Along with the standard trading platform functionality, Forex robots will be a good helper even for beginners who only make the first steps to the exchange markets.
When choosing a sales assistant, it is essential to pay attention to the characteristics of the program: speed and accuracy of work. With all of this, you cannot rely entirely on the robot - you need to take decisions carefully. In the case of indicators, it is recommended to use two, or even three, bots to filter out false signals. Otherwise, the probability of opening an unprofitable position is high.
By default, there are essential programs built into any terminal. These are the most commonly used bots that work by simple algorithms - whether technical indicators or scripts. To use more modified trading robots, download them for free on the MTDownloads website. Along with standard applications, they will increase the chances to open profitable trades and timely exit the market.
Types of the market analysis
Indicators are the most commonly used Forex robots. They are divided into two broad general forms:
- Technical analysis;
As you know, there are two types of the financial market analysis and, in particular, there are technical and fundamental analyses. Drawing an analogy between this and the above types of indicators, it becomes evident how the robots work.
Indicators of technical analysis
Indicators of technical or computer analysis work by mathematical calculations. It all started with the fact that experts noticed the frequency of certain market situations. Further, programs were created to analyze the past quotes of the financial instruments, and the data on the price fluctuations are predicted. It is how technical indicators appeared. After a while, advisers based on such robots began to be actively created along with scripts and compilers. The latter optimize the work and assist in creating new trade robots accordingly.
To date, Forex-assistants provide traders and investors with specific trading signals notifying about the appropriate entry point to the market and closing positions. Robots automatically calculate the required metrics in the trading terminal, so a trader only needs to monitor the signals and react correctly.
As for the advisors, they are an improved model of indicators that, in addition to analysis, can open transactions and accompany positions.
This type of robots is used in the fundamental analysis of markets. A trader can understand the general condition of the economy or a particular industry in the observed country. Also, the indicators of this group allow predicting the reaction of traders to the news with great accuracy.
The most known macroeconomic indicators are psychological - they study the sentiments of the market participants.
Unlike technical analyses conducted on charts, fundamental reports are periodically published in specialized sources. Previously, this was done in a nutshell, but since the 1970s, the data is output at a particular time. Therefore, it became possible to create an economic calendar that informs traders about all important events in the financial market.
Types of indicators
Depending on the kind of reflected characteristics, there are several types of analysis tools:
- leading (oscillators);
Trend instruments allow determining the bullish or bearish trend as well as figure out the time of a reversal. Oscillators help recognize the origins of a new trend and to predict the most likely turning points.
Volume indicators reflect the degree of activity of buyers and sellers in the market at a certain moment. The places where most bull or bear orders are collected will be the most likely points of the trend reversal.
Volatility is one of the main characteristics of the market reflecting the price fluctuations for a particular period. Volatility indicators show how broad the range of price movement is and at what moment it is best to open an order.
Cyclic tools demonstrate the stage of the trend’s formation. Their operation is based on the fact that the market moves cyclically, from one stage to the next, eventually returning to the starting point.