B clock with Spread Indicator For MT4
The B clock with Spread Indicator For MT4 displays the time left before a new candlestick begins to plot. It also shows the Bid-Ask spread in a customizable font.
Trading ideas with the B clock with Spread Indicator For MT4
This indicator provides you with a display that shows the remaining-time data and spread data. The remaining-time data is based on the timeframe and how much time is left before the next candlestick is formed. It is a handy tool to have because you are able to accurately time your entries based on the clock. It is paramount especially in such cases whereby you are making use of a strategy that has an entry rule stipulating that you should only enter the market as soon as the new candlestick is formed.
In volatile market conditions, you will discover that there can be accelerated slippage when the next candle forms thus possibly resulting in you entering the market at an unfavorable time if indeed you did mistime your entry. Timing is of the essence - as mentioned most strategies are time-sensitive however now you have a tool that constantly keeps you up to date as far as time is concerned.
When you load the tool into your chart you should notice the parenthesis - in between the brackets is the spread. The spread is basically the difference between the ask and the bid price. This is the way in which brokers make money because each trade you take - the volume thereof is applied to this spread. You should always be mindful of this trading overhead because it is a direct cost to your trading activity. Furthermore, if you have a variable spread account then this value will change all the time.
In volatile markets, the spread will increase especially during big news events. The spread is a tool which the broker uses to their advantage so it is always good to be aware of this everchanging data point.
Now I am going to just show what this indicator looks like when loaded into your screen.
B clock with Spread Indicator For MT4 - Setup
Below you can see the indicator added into my chart. The clock is shown on the left whereas the spread is given to you in the brackets.
The indicator functions as its supposed to, however, because of the light background that I am using it kind of makes it hard for me to recognize the display on my screen. The default setting is defined so that the display or the color of the text must be light blue. Which is not good in my case. If you were to use a dark screen color then that will be perfectly fine - in my instance, I am not going to change the background color. I am just going to change the color of the text of the indicator. I will go with red so that I can quickly recognize the display. Of course, you can change the color to the color of your preference.
B clock with Spread Indicator For MT4 - News
A situation where this indicator can be useful is to use it as an add-on tool to trade the news. What happens during news events is that the spread will begin to open up and widen but that is not enough to inform your trade. You still need a timing element to get the trade right. Therefore, the indicator here has the candle clock included in it so that you can check the candle countdown on your trading chart leading up to the news event without having to turn your focus away from your trading chart by looking at a self-standing clock or watch.
B clock with Spread Indicator For MT4 - Binary Options
News events are not the only use-case. In binary options trading - most brokers do not have an MT4 platform. They simply have their own trading platforms that exist without the need for MT4. This has its pros but in cases such as testing, you will need your MT4 platform. By this, I mean that you could be developing or testing a binary options trading strategy using technical tools or customized indicators only compatible with MT4. Therefore, you are not able to execute your testing in the dedicated binary options trading software because the customized MT4 indicators are not compatible therefore you need to use MT4.
So what you could do is load the clock and spread indicator on your screen. Additionally, you will also use a horizontal object tool as a simulation tool to select your strike price in the screen on the entry candle. Then if your expiry time based on your strategy is 5 minutes - then you can just look at the clock to countdown until your virtual binary options contract has expired. You can just refer to the horizontal line to see where the market ended up at the time the contract expires. It is not a completely elegant solution, however, you will still be able to gain a comprehensive insight into the actual deployment of your binary options trading strategy whilst testing in MT4.