Differences Between the VWAP Indicator on MT4 & MT5
You have gotten serious about using the volume-weighted average price (VWAP) indicator. But is it better for the MetaTrader 4 or MetaTrader 5?
Published October 31, 2021.
Are you a MetaTrader 4 or MetaTrader 5 user?
In either case, you may be interested in exploiting the volume-weighted average price (VWAP) to maximize your trades. If you have this technical indicator already downloaded and installed on these trading platforms, you may be wondering if a VWAP chart is better on MT4 or MT5.
Let's explore the advantages and disadvantages of utilizing VWAP settings on either outlet.
Pros and Cons of the VWAP Indicator for MT4
- The VWAP indicator is a tremendous technical analysis tool. Since MT4 is for serious or professional traders, the VWAP can easily be incorporated (once you have the file) into your broader strategy.
- VWAP chart is customizable, from colors and style to first and second band deviations.
- Finding a free VWAP indicator available for MT4 can be challenging.
- The VWAP indicator on MT4 is not 100 percent accurate because there is a paucity of accurate volume data.
- VWAP might be slow as it lags behind the enormous volume of data for stocks, forex, or cryptocurrencies.
- VWAP line does not extend as the market moves.
Pros and Cons of the VWAP Indicator for MT5
- The VWAP on MT5 possesses more accurate weighted price information at the current time.
- It is not impacted by market noise, so it can be viewed in short intervals, like one minute and 15 minutes.
- You can complement your pattern indicators and oscillators with VWAP.
- The VWAP navigator has been considered oftentimes slow.
- The entire VWAP edition is not free on MT5. The free version only has one line of weighted price, while the premium program has multiple lines based on time frames.
Conclusion: Is the VWAP Indicator Better for MT4 or MT5?
In the end, is the VWAP indicator superior for MT4 or MT5? It essentially depends on your trading objectives. The former is generally built for forex trading, while the latter is for both forex and stocks. Since VWAP is mostly inserted into stock trading, you would be better off maintaining a VWAP-MT5 connection.