Trading by fundamental analysis in MT5
In the classical sense, trading by fundamental analysis involves opening deals on the economic calendar at the time of news release. Traders evaluate published macroeconomic indicators using analytical resources as a source – Reuters, Bloomberg, etc. Many platforms do not support fundamental analysis (in MT4 there is even a recommendation to turn off the news stream, because it only takes up memory and is not useful). A trader has to monitor both third-party resources and platform charts at the same time.
Macroeconomic indicators in MT5
The MT5 developers decided to fix this problem by adding an interesting, convenient, universal functionality to the platform for trading based on macroeconomic indicators. Although MT5 is often criticized in comparison with MT4, it is in the direction of news trading that this platform is much more perfect.
News feed here is similar to MT4: there are several aggregators (analytical resources) from which the platform automatically downloads news. The news block is located under the price chart – the tab of the same name in the lower toolbar.
Useful MT5 functions that MT4 lacks:
- Sorting news by category and displaying the necessary ones by analogy with the economic calendar. Configurable with the right button. The news is presented in one short, concise sentence, reminiscent of a title. For details, you still have to go to the Internet or double-click on the news itself.
- Change the language of the news. In addition to the English version of the display, you can select Russian in the “Server” tab (Service – Settings).
- There is a built-in economic calendar. It is a standard filtered form, located next to the News tab. The publication of a macroeconomic indicator can be visualized by turning on an alert. Also, the appearance of news can be displayed on the chart (“Show on charts” and “Add all events”).
Traders who actively work with analytical resources and the calendar will not see anything special here. The general functionality of MT5 in terms of fundamental analysis is almost identical. Its advantage is one: everything is concentrated in one place for a trader with the ability to overlay information. A trader does not need to be distracted separately by the calendar, then by statistics, and only then return to the terminal. Everything is concentrated in MT5. At the very least, this saves time on decision making. And of course, it’s just more comfortable, besides, you can always check the news on the Internet.
Traders who work with long-term strategies are better off using MT4. It has more convenient and useful functions, and an economic calendar is enough to analyze macroeconomic indicators. Do you agree? It will be interesting to know your opinion in the comments!