Can’t Find the Right Indicator? Here’s How to Create One in MT5
Introduction
In the fast-paced world of forex and CFD trading, your tools must match your strategy. While MetaTrader (also known as Metatreder by some users) is packed with pre-installed indicators, there are times when none of them quite hit the mark. What happens when you’re looking for an edge and standard tools fall short? You build your own.
Yes, MetaTrader 5 (MT5) allows you to create your own custom indicators. This might sound like a task for advanced coders, but with a bit of guidance, even beginners can design powerful indicators that give them an analytical advantage.
In this MetaTrader tutorial, we’ll walk you through how to create your own indicator from scratch. Whether you’re transitioning from MetaTrader 4 for beginners or are exploring the differences between MT5 vs MT4, this guide will give you full control over your charting tools.
Why Custom Indicators Matter
Even the best traders can struggle with off-the-shelf tools. Why?
Because most pre-built indicators follow generic rules. They’re helpful but not always tailored to your unique entry or exit strategy. Creating custom indicators in MetaTrader 5 offers:
- Precision: Fine-tune logic that matches your specific trading system.
- Innovation: Test new market theories or indicator combinations.
- Efficiency: Merge multiple indicators into one clean script.
- Automation: Pair your custom indicators with Expert Advisors for full automated trading on MetaTrader.
And since MT5 is far more flexible than MT4, this is a major reason many are switching platforms.
Understanding the Foundation: MQL5
MT5 uses a programming language called MQL5 (MetaQuotes Language 5). This is the language behind Expert Advisors, scripts, and indicators in MetaTrader 5.
Why is this important?
Because writing a custom indicator means you’ll be working in MQL5. Thankfully, MetaTrader provides a built-in coding platform called MetaEditor, making development easier.
If you’ve used MT4 before, note that MQL5 is more powerful and supports object-oriented programming. This is one of the key MT5 vs MT4 differences and a reason advanced traders prefer the newer platform.
Step-by-Step: How to Create a Custom Indicator in MetaTrader 5
Here’s a beginner-friendly, step-by-step MetaTrader tutorial to help you build your first indicator.
Step 1: Open MetaEditor
In MT5, locate and click the MetaEditor icon (or press F4). This opens the coding environment where you’ll write and manage your indicators.
Step 2: Start a New Custom Indicator
- Go to File > New.
- Select Custom Indicator, click Next.
- Enter a name (e.g., “MyRSIBands”).
- Fill in any optional parameters (like indicator buffers and levels).
Click Finish to generate the default script structure.
Step 3: Set Properties
In the auto-generated code, locate the OnInit() function. Here, you can define:
- Indicator colors
- Line styles
- Display properties
- Number of buffers (data arrays)
This step defines how your indicator appears on the chart.
Step 4: Add Your Indicator Logic
This is the part where you decide what your indicator will actually do. Inside the section called “OnCalculate”, you’ll define the logic or formula your indicator should follow.
For example, if you want your indicator to calculate a 14-period moving average, you’ll write instructions that tell MetaTrader to look at the last 14 closing prices, add them together, and divide the result by 14 to get the average. This number will then be shown as a line on your chart.
Whatever formula or strategy you want—whether it’s based on price, volume, or another value—this is the step where you describe how your indicator should calculate and display it.
Once you’ve written the logic, you’ll also need to make sure it’s assigned to the correct “buffer”—which is just the part of the code that tells MetaTrader where and how to draw the line on your chart.
Step 5: Compile Your Indicator
- Click Compile or press F7.
- Fix any errors shown at the bottom.
- Once you see “0 errors,” your indicator is ready.
Step 6: Attach It to Your Chart
- Return to MT5.
- Go to Insert > Indicators > Custom.
- Choose your custom indicator and apply it to any chart.
How to Use MetaTrader on Android (for Custom Indicators)
Although you can’t create indicators directly on your phone, the MetaTrader app still lets you:
- View charts with your custom indicators (if synced from your desktop).
- Monitor trade setups on-the-go.
- Use built-in technical tools via mobile.
Here’s how to use MetaTrader on Android efficiently:
- Download MetaTrader 5 from the Play Store.
- Log in with your broker account.
- Tap the chart icon and add any installed indicators.
- Monitor trade alerts or price movements wherever you are.
Custom indicators won’t be editable, but they remain fully visible and functional—perfect for mobile trading.
Benefits of Automated Trading on MetaTrader
Custom indicators don’t have to work alone. You can pair them with Expert Advisors (EAs) to run your entire trading system automatically.
Benefits of automation:
- Eliminates emotional decisions
- Trades 24/5—even when you sleep
- Uses predefined logic based on your indicator’s output
- Backtests strategies with historical data
Once your custom indicator performs consistently, integrating it into an EA can multiply its potential—making automated trading on MetaTrader even more powerful.
Comparing MT5 vs MT4: Why MT5 Wins for Custom Tools
Many traders start with MetaTrader 4 for beginners. It’s lightweight, stable, and supported by most brokers. But if your goal is advanced custom indicators or automation, here’s how MT5 stands out:
- MT5 supports multi-threading (faster backtesting)
- More timeframes and chart types
- Integrated economic calendar
- More advanced programming via MQL5
- Better for automated trading on MetaTrader
Still, MT4 remains popular, especially among beginners. Just know that for long-term flexibility, MT5 is the smarter upgrade.
Choosing the Best Brokers for MetaTrader 5
Your indicator is only as good as the broker executing your trades. Here’s what to look for in the best brokers for MetaTrader 5:
- Regulated by top-tier financial authorities
- Supports free MetaTrader indicators and custom tools
- Offers fast trade execution and low spreads
- Provides VPS options for running automated systems
- Compatible with both desktop and mobile apps
Conclusion
Creating a custom indicator in MetaTrader 5 may sound intimidating—but it doesn’t have to be. With MetaEditor, MQL5, and a bit of curiosity, you can build powerful tools that support your exact trading plan.
This MetaTrader tutorial showed how to go from idea to working indicator, even if you’re coming from MetaTrader 4 for beginners. Once built, your indicators can be used across charts, on mobile, or inside Expert Advisors for full automated trading on MetaTrader.
In a world where every second matters, having tools you trust—especially ones you’ve built—is a competitive edge.
Now you’re ready. Open MetaEditor. Build your edge. Trade smarter.
