Candle Time End and Spread Indicator For MT5
Table Of Contents:
- Candle Time End and Spread Indicator For MT5
- How to Interpret Candle Time End and Spread Indicator For MT5
- How to Analyze Spread Using Candle Time End and Spread Indicator For MT5
The Candle Time End and Spread Indicator For MT5 displays the latest bid-ask spread and the time left till the current candle close. Traders can use this indicator for additional confirmation of entries and exits.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
How to Interpret Candle Time End and Spread Indicator For MT5
Knowing the time remaining for a candle to end can be very useful on multiple occasions. The MT5 platform shows the current time but it does not show the remaining time in the current candle. The Candle Time End and Spread Indicator For MT5 allows you to see on chart the remaining time before the next candle bar starts to form.
In short term trading, especially those lasting less than a day, timing becomes one of the most important aspects of trade entry and exit. This is where knowing when a candle is going to close can come in handy.
This is even more true for traders using candlestick patterns as part of their trading strategies. The Candle Time End and Spread Indicator For MT5 can alert you before a candle bar comes to a close so that you can be prepared to act on your chart analysis.
The Forex market is a 24 hour market, with activity remaining relatively higher during certain hours of the day when the New York and London sessions overlap. This is the time when currency rates are most volatile, providing traders with ample opportunities to profit. The Candle Time End and Spread Indicator For MT5 can alert you to when this session starts and when it ends.
How to Analyze Spread Using Candle Time End and Spread Indicator For MT5
The Candle Time End and Spread Indicator For MT5 displays the current spread for the instrument under consideration. In Forex parlance, the term “spread” denotes the difference between the Bid (Buy) rate and the Ask (Sell) rate of an underlying asset. For example, if for EUR-USD, the Bid rate is 1.10719, and the Ask rate is 1.10729, the spread is 1 pip per trading unit. If the Bid price is 1.10719 and the Ask price is 1.10769, the spread would be 5 pips. When trading currencies, profit is calculated based on the price movement in the underlying pair. However, for any trade to become profitable, the currency price has to first cross the spread.
Thus, if a currency pair has a 2 pips spread, the value of the currency would have to increase or decrease by a minimum of 3 pips for a long or short trade to turn profitable (2 pips for the spread, and 1 pip for the profit). As such, the greater is the bid-ask spread, the more time it could potentially take for any trade to earn money. If we compare EUR-USD, which typically has a 0.6 pip spread, to a comparatively higher spread pair such as the AUD-NZD (average spread of 6-10 pips), the Euro-Dollar will not need to move by as much as AUD-NZD in order for a trade to get profitable. This critical bit of information, readily made available by the Candle Time End and Spread Indicator For MT5, can help traders decide on which assets to trade.
