Price Alert Indicator – A useful tool for MT4
A disciplined trader is one who has done their homework and know the price levels at which they want to get alerted. This means, analyzing the markets objectively and looking to the fundamentals in the past and the upcoming fundamental events that can act as a catalyst for prices.
Following this, a disciplined trader chalks out a trading plan with the risk factors taken into account. If you are someone, like most who has a day job, then it is quite certain that you would not have the luxury to sit in front of your trading terminal all day.
Rather, it would be ideal if you got some kind of an alert when price reaches a specified level over the course of time. While there is an inbuilt mechanism for using the MT4’s functions to send you price alerts, it is no doubt a bit tedious.
This is where the price alert indicator can be a very handy tool when trading. Imagine that after you are prepared and done your homework about the markets, you get an automatic alert telling you that price has reached a certain level.
Based on this alert or a trigger, you would then be able to easily access your MT4 trading platform (via the mobile app) and place your trades. Alternately, you might want to receive a price alert when your trade has been triggered.
If you have been trading with the MT4 trading platform for a while, you will know that there are no alerts to tell you when you trade was triggered or whether your trade reached your desired take profit level or if price hit your stop loss level.
How about using a handy tool which is as simple as moving the horizontal lines around and you automatically get the alerts? The MT4 price alert indicator does exactly that. It is a simple but customizable tool that you can use.
It can alert you when price reaches a specific level via the means of an email letting you know that your conditions have been met. This can save up a lot of time and you do not have to keep logging into your MT4 mobile trading app every few minutes to check whether your trade was triggered or other various conditions that you can imagine.
Before we go on to explain how the price alert indicator works, let’s look at the basic functions that are built into the MT4 trading platform. This will give you two choices on how you can set alerts for yourself. This comparison will also reflect how easy it is in using the price alert indicator that we talk about in this article.
How to set price alerts using the MT4 platform?
When you power up your MT4 trading terminal, head to the lower section where you will find details such as your trades, capital and so on. Here, navigate to the Alerts tab. This is the space where you can set price alerts by default.
Let’s start with the very basic. Say you are looking at the gold chart. There are two scenarios here. Firstly, you have analyzed the markets and you want to go short when price reaches the 1300 level. You might also have set up a short trade at the 1300 level with your stop loss at the 1250 level. So, in order to be notified when price reaches these levels, you can configure it using the alerts tab.
To do this, right click anywhere on the alerts tab and select create. This will open the alert indicator window on your MT4 platform.
MT4 Price Alert window configuration with time
In the above chart, you can see the MT4 price alert window in action. After right-clicking in the space, we configure the alert window indicator. In the above example, we set the alert to be triggered when the bid price is greater than 1300. This means that when the bid price moves above 1300, an alert is triggered.
Note that in the above example, we have used only a sound alert. You can change this to an email alert as well. This alert is also constrained by the time limits. For example, if gold price does not reach above 1300 level, the alert is terminated.
In the next example, we have another case where an alert is set up but without time constraints.
MT4 price alert configuration without time
In the above chart, the alert tab can be seen where we set the alert to be sent when price falls below the 1250 level. This alert will continue to play out with no end in sight. If you do not configure the alerts properly, you will have to end up starting to set up the alerts from the beginning or end up with annoying alerts that are useless.
While the above method is done by making use of the default MT4 functionality, you can see that it is a bit tedious. Assuming that you want to set the alert for entry, stops and target price level, this means you will need to set up three alerts in total.
Assuming that you want to set up alerts for five instruments, that 15 alerts which need to be configured in total. If it takes you on average, 30 seconds to set up the alert, that’s about 7 and a half minutes of time required (provided you are very proficient with the alert functionality).
One way to avoid this is to make use of the price alert configuration indicator. This custom indicator will allow you to set up alerts by simply entering the price levels that you are interested in.
Because you are using the horizontal lines as a visual guide, it is a lot more user friendly compared to the traditional way of setting up the alerts. It also makes it easy and you can set up the alerts on a number of instruments without spending too much time.
If the above alternative sounds as a better option for you, then read on into the next chapter on how we can use the MT4 price alert indicator to alert you when price hits a certain level of interest.
What is the MT4 price alert indicator?
The MT4 price alert indicator is basically a handy tool that is very simple. It eliminates the need for setting custom alerts via the MT4 default functionality. By just using the configuration window, you can apply this alert to multiple instruments.
What’s better is the fact that the MT4 price alert indicator can be applied to the same chart but with different time frames. You can start to see the benefits that the MT4 price alert indicator provides for you.
The first step to using the MT4 price alert indicator is to download it. Once you download the ex4 file, you can then copy/paste it into your MT4’s indicator folder. From this folder you can then drag/drop the indicator onto the chart of your choice.
When you activate the indicator by dragging it onto the chart, you will be presented with the configuration window. The configuration settings for the MT4 price alert indicator is very easy as seen in the picture below.
MT4 Price alert indicator configuration window
In the above picture, you can see that there are just four fields to enter. The first three are the three price levels of interest. You can think of this as the entry, stop loss and take profit levels.
They are also aptly defined by the names such as When price goes below, when price goes above, When price reaches.
These conditions allow you to set up the alerts based on different scenarios and market conditions. For example, if you want to set a sell stop order, you can set up or activate the When prices reach. This will send you an automatic alert when price reaches the area of your interest.
Likewise, once you are into a trade, you can use the three settings to alert you to the entry price (When price reaches), the stop loss level (when price goes above/below) and the target profit level (When price goes below/above).
The versatility of this MT4 price alert indicator is that you will be automatically alerted when your trade is triggered, when it hits the stop loss or when the price hits your take profit level. This eliminates the need for having to make use of the MT4 mobile app and to log in every few hours to check how your trade is faring.
You can use the MT4 price alert indicator to also alert you when the market conditions are met. This can enable you to take market orders after you get the alert.
The final configuration of the MT4 price alert indicator is whether you should be alerted via email or not. If you enable email alerts, then make sure that your email settings are configured using the MT4 options window.
Note that for this alert indicator to work, you will need to keep your MT4 trading terminal running. If you are a serious trader, then chances are that you might be using a VPS (virtual private server). This allows your MT4 trading platform to keep running 24 hours a day and you can receive the alerts without interruption.
If you do not have a VPS running, then you can just keep your desktop based MT4 trading platform running in order for this indicator to work.
There are some visual configurations as well that you can make. This is basically limited to the thickness of the lines.
MT4 Price alert indicator on chart
The chart above shows what happens after you set up the alerts. You can see that the green line is set to 1300 which means that you will get an alert when price goes above 1300. The red line is the area where you will be alerted to if price falls below this level.
Finally, the yellow horizontal line indicators the price level to which you are alerted when it touches this level.
MT4 Price alert indicator – Conclusion
The MT4 price alert indicator is a very easy to use tool. This can complement any existing trading strategy. Assuming that you trade with pending market orders, the MT4 price alert indicator can be easily used to alert you when your trades are triggered and whether they closed in profit or a loss.
The price alert indicator can also be used in market analysis. If you prepare the markets over the weekend then instead of checking the charts every day to see if the desired price level was reached, you can simply use the MT4 price alert indicator to do the job for you.
This indicator is very useful if you trade a lot and trade very often. But there are also some drawbacks to this indicator.
To begin with, the MT4 price alert indicator works only when your MT4 trading platform is working. This means that if you close your trading terminal, the indicator will not work. Traders who use a VPS service will find that this tool is better to use. Because your MT4 trading terminal is practically running 24 hours a day, you will start to receive the price alerts as and when it happens.
You also need to ensure that your email configurations are correctly set. Because this indicator sends out email alerts, it is ideal that you check your SMTP settings on your MT4 trading terminal in order to avoid missing out on the email alerts.
Overall, as you can see the MT4 price alert indicator is a good tool for traders who tend to plan ahead and wait for the right market conditions. It is also an easy way to get alerted to how your open trades are performing.
While it is relatively easy to login to your MT4 mobile trading app to check the status of your trades, the MT4 price alert indicator simply sends you an email. This means that if you are in a place where mobile data is expensive, the option to use the MT4 price alert indicator is worth it.