Metatrader 4 Setup: Forex Trend Analysis, Price Breakouts

In this article we will show forex traders a great Metatrader 4 setup for forex trend analysis and how to monitor 28 pairs and 8 currencies for price breakouts. We will show traders how to set up the charts by individual currency. This will provide all forex traders with the best Metatrader setup for trend trading, determining what currencies are weak or strong, and knowing what pairs have the most potential for pips.

Download Metatrader 4

Start by downloading Metatrader 4 to your laptop or desktop computer. We recommend contacting your forex broker or looking on their website for their exact instructions. Instructions for downloading MT4 might vary from broker to broker. Your broker should have downloadable Metatrader 4 versions for windows, Mac OS or Linux operating systems.

MT4 can be downloaded using several web browsers, including Internet Explorer, Google Chrome and Mozilla Firefox. Regardless of which browser you use, follow the steps on the broker website. For windows operating system you will download the controller from the broker website then open it to install Metatrader 4 on your hard drive.

Download Metatrader 4

Download Metatrader 4

These instructions are for MT4 setup on laptop or desktop computers. Most brokers also have App store or Google play mobile versions to setup Metatrader on your mobile device or phone.

Metatrader 4 Setup For Trend Analysis

After you download Metatrader 4 you can remove any default charts on your screen. Open up 28 charts for all pairs comprised of the 8 most liquid currencies. This would be the USD, CAD, EUR, GBP, CHF, JPY, AUD and NZD pairs. 28 pairs total. Now install some exponential moving averages based on the 5 and 12 time periods. These exponential moving averages will be used for trend analysis. Check the complete setup instructions for the forex trend indicators and your charts should now look like the one shown below:

Metatrader 4 Setup Trend Analysis

Metatrader 4 Setup Trend Analysis

These are very simple trend indicators, but become very powerful when set up by individual currency. So next step is to group the pairs by individual currency. There should be 7 pairs in each group. For example, group all of the EUR pairs together side by side. The EUR/USD, EUR/JPY, EUR/CAD, etc. should be grouped side by side. You can also use the metatrader profiles for the individual currency setup if you like. The bottom tray on Metatrader should look like the image below for the EUR pairs. Then repeat this process for the top 8 most liquid currencies.

Metatrader 4 Setup For Trend Analysis

Metatrader 4 Setup For Trend Analysis

Why Setup Metatrader 4 Charts By Individual Currency?

In the case of the EUR pairs, so you can tell if the EUR is consistently strong or weak so you know when to trade these pairs, and in which direction. Example: If the H4 or D1 time frame is pointing down on all 7 EUR pairs listed, you know the EUR is weak and driving the movement. If the EUR pairs are mixed just go to the next currency. Since you can set up your charts this way for 8 currencies there is usually something trending up or down every week. You can learn more about the fundamental principles behind this setup for forex market analysis with parallel and inverse groups of pairs, it works and is powerful! Forex traders always say they are looking for an edge in their forex trading. Setting up your trend charts this way by individual currency will give you that edge and open up 28 pairs to your potential trade horizon, with lots more pips.

How to Analyze Individual Currencies With Metatrader 4

After Metatrader 4 is set up by individual currency. You can begin analyzing individual currencies for consistent strength or weakness, along with setting up some accurate trading plans. For this daily task you can utilize our forex market analysis spreadsheet. For example, if all of the JPY pairs are pointing up on the D1 time frames, you know that the JPY is weak. Then you can set trading plans to buy these pairs, estimate the price targets, and set price alerts for the breakouts.  When the price alerts hit you can verify any buys with The Forex Heatmap® like the example trade above.  This process works for the top 8 currencies we follow.

Metatrader Setup Trend Analysis

Metatrader Setup Trend Analysis

Metatrader 4 Setup For Price Breakouts

Now that you have your trend indicators set up for trend analysis lets setup the same charts to monitor for price breakouts in both directions on any time frame. Metatrader 4 has a price alert functionality that looks like the image below:

Metatrader 4 Setup Price Breakouts

Metatrader 4 Setup Price Breakouts

At the bottom of the Metatrader 4 screen click on the “Alerts” tab then set price breakout alerts in either direction on any pair just above or below the current pricing, if the pair is trending. When the alert goes off you will hear an audible alert that repeats until you shut it off. Traders can also set price alerts to monitor for price reversals, and for profit targets to scale out lots or exit trades. The Metatrader 4 price alert functionality is a fantastic tool for trend traders to monitor for price breakouts, and it works great for all traders. When the price alerts hit you can look at the procedures below to verify if you have a valid entry point.

How To Enter Forex Trades With MT4

Now that you have your setup on Metatrader 4, we can review how to successfully enter trend based trades with this system. Example trade entry: A trader sets a price alert for the EUR/AUD for a resistance breakout.  Wait for the main trading session. The price alert goes off, then you must verify the buy trade entry on this pair.

Traders can use The Forex Heatmap® forex heatmap to verify their trade entry. In this case the AUD is weak and is driving the movement. You would use the smaller time frames and heatmap signals to verify the buy to enter the trends on the higher time frames, like the H4 time frame and larger.

Metatrader 4 Setup Signals

Metatrader 4 Setup Signals

Metatrader 4 Setup Chart

Metatrader 4 Setup Chart

This trade entry system using Metatrader 4 can be used for trend based trade entries, and for shorter term trades against the trend or on ranging pairs. This trade entry system can also be used for day trading. The system work very well for 8 currencies and 28 pairs.

Traders can also manage trade exits with MT4. If a trader sells the EUR/CHF and this pair is hitting strong support, these levels can be clearly seen on Metatrader 4 using the support and resistance cross hairs. Activate the cross hairs to see that this pair has heavy support at the 1.0700 level. This is a profit taking point on any sell trades and possible reversal point back to the upside. Since you have your charts set up by individual currency you can check all of the EUR pairs support levels quickly using the support and resistance cross hairs.

Metatrader 4 Support Resistance Levels

Metatrader 4 Support Resistance Levels

Metatrader 4 Setup Videos

Our website is loaded with many illustrated articles and lessons. We also have a library of 10 videos to explain how to setup Metatrader 4. This includes basic chart setup and more setups using the Metatrader “profiles”. After reviewing more information on our website and also our videos,  you will have a full professional chart and indicators setup for market analysis and entering trades for 28 pairs. Our trading system works and is profitable.

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