Strategy, discipline, and possibly risk management are the first things that likely come to mind when you consider what gives a prop trader an advantage in a situation. Indeed, those are all powerful hits. However, one small feature that frequently goes unnoticed is MetaTrader 5’s (MT5) chart type selection.
You’ve likely been perfecting your approach, maximizing your lot sizes, and attempting to avoid drawdown hell if you’re preparing for or now in the middle of a prop firm issue. However, your perception of the market might directly affect how you respond to it. This implies that the sort of chart you select may be the key ingredient you were unaware you were lacking.
Let’s talk about this benefit and see how choosing the appropriate MT5 chart style will help you get the focus and self-assurance you need to ace your upcoming prop challenge.
Why Chart Type Matters
Your look into the market is provided by charts. They assist you in interpreting price patterns, identifying trading opportunities, and navigating the confusion. However, the way that various chart formats display pricing data varies. Additionally, depending on your trading style—intraday, swing, or scalping—they can either fully hide or highlight important setups.
Candlesticks are the go-to tool for most traders since that’s what the majority of mentors and YouTubers use. However, even if they’re fantastic, you should have other tools as well. In reality, you may sometimes see things far more clearly using bars, line charts, or even bespoke charts.
Consider chart types like lenses for a camera. With a wide-angle lens, you can see the wider picture. A zoom lens focuses on the details. If you pick the correct one, you’ll be taking crisp pictures. If you choose the incorrect one, everything will be a blur.
The Big Three on MT5: Candlesticks, Bars, and Line Charts
These are the types of charts in MT5 and each has its own personality.
Candlestick Charts – The Trader’s Favorite
The majority of traders use candlesticks and it’s understandable why. They include a lot of information in a single, tidy block, including open, high, low, and close.
An emotional picture of the market at that period is provided by each candle. Wicks that are long? Refusal. Body fat? momentum. Are those pin bars? possible reversals. You can practically hear the market whisper if you become proficient at reading them.
The drawback is that candlestick charts may become noisy. It might feel like watching a strobe light display when you’re trading short periods or volatile pairings during a prop challenge. Hesitancy, FOMO, or worse—overtrading—can result from examining every candle in detail.
Bar Charts – Clean, Minimal, and Surprisingly Powerful
Bar charts are the less appealing brother of candlestick charts. In a sleeker, less ostentatious manner, they display the same data—open, high, low, and close. No distractions, no colorful bodies.
Old-school traders and others who like simplicity particularly adore this sort of chart. Making the transition to bars might help if you’ve ever been overwhelmed by the amount of color and patterns on a candlestick chart.
By cutting down on noise, bar charts allow you to concentrate on the actual market activity rather than being sidetracked by candle patterns. This clarity can be a significant advantage for traders engaging in short-term momentum plays or prop firm scalping.
Line Charts – The Underdog with a Hidden Purpose
Line charts have a terrible reputation. The majority of people view them as the training wheels of charting, something you use for the first time and never return to. However, that is a mistake.
Only closing prices are plotted on line charts. This implies that the intrabar noise—the wicks, the drama, and the market deceiving you—is invisible to you. A clear line indicating the real price closure is all that is displayed.
Because of this, line charts are quite helpful in locating actual support and resistance areas. A line chart will show you the true consensus, or the price the market accepted at close, but candlesticks may make a level appear weak due to one extended wick.
For prop firm traders looking to reduce over-analysis and tighten their entry zones, flipping to a line chart for a few seconds can do wonders.
Matching Chart Types to Your Trading Style
Not every trader needs every chart type. The goal isn’t to use all of them—it’s to know when to use the right one for the job.
If You’re a Scalper…
You’re most likely trying to catch fast moves by living off of the 1- or 5-minute charts. Bar charts might be your closest buddy in this world. They eliminate background noise so you can concentrate on quick momentum spikes.
But during wild surges or high-impact news? For ten seconds, switch to a line chart. It will assist you in finding your core and determining where the price is truly stable.
If You’re a Swing Trader…
For days or perhaps weeks, you are holding transactions. Candlestick charts are ideal for swing trading. You have time to read the tales they are sharing, which include enveloping forms, fatigue candles, and reversal patterns.
However, what about when you’re focusing on significant levels of support or resistance on a daily or monthly basis? To confirm where the market regularly closes, use a line chart. It will make your zones cleaner.
If You’re a Price Action Purist…
You enjoy naked trading and clear charts. You may like bar charts if you’re a minimalist. Just pricing, no fancy indicators, no distractions.
Don’t disregard candlesticks entirely, though. On a 4H chart, a large engulfing candle might occasionally provide all the confirmation you want.
