When you get into prop trading, particularly forex, one of the first things you’ll struggle with is the chart. Every choice you make—to buy, sell, or do nothing—comes from what you’re seeing on those charts. And since most prop firms give MT5 as their platform of choice, the big question is: What chart type is ideal for analyzing currency pairs on MT5?
Sounds easy, right? Just grab one and swap. But using the wrong chart type can warp your perception of price action, disrupt your entries, and even cause you to misread market structure. And in a prop firm environment, where rules are stringent and drawdowns are niggardly, that’s not something you want to get wrong.
Let’s discuss the primary chart types on MT5, what they’re good at, what they aren’t, and which one may work best for you as a funded trader.
Why Chart Type Matters in Prop Trading
On a prop firm, you’re not merely trading with your own little account—you’re trading the firm’s money. They’ve extended you greater buying power, sure, but with it comes responsibility.
Which means:
* You can’t afford to be sloppy with your analysis.
* You can’t allow market noise to mislead you into making hasty trades.
* You require clarity and consistency in your interpretation of price.
And the chart type you employ has a direct impact on how well you perceive market trends, reversals, and momentum changes. Two different traders can glance at the same currency pair on MT5 but, employing different chart types, emerge with completely different conclusions.
That is, your chart type isn’t merely style preference. It’s a strategic decision that determines your trading advantage.
The Main Chart Types on MT5
You get three default types of charts in MT5: line charts, bar charts, and candlestick charts. Additionally, traders usually introduce bespoke styles such as Heikin-Ashi or Renko, but first, let’s stick with the standard ones and branch out later.
Line Charts
What they are:
* Line charts are the most basic form of price display. They link the closing prices of every period in a single line.
* Why traders prefer them:
* Sparsely decorated and simple—just good for clearing noise.
Easy to identify broad trends without becoming bogged down in wicks or intraday swings.
Practical to use when stepping back and observing the greater good.
Where they are lacking:
* No information on highs, lows, or intra-period movement.
* Can hide significant indications, such as rejection wicks or sudden rushes.
Best application for prop traders:
Line charts can be great for swing trading at a prop firm and for those who want to stay focused on broad market direction. But if your strategy depends on precision—like scalping EUR/USD around London open—you’ll probably find them too basic.
Bar Charts
What they are:
Bar charts indicate the open, high, low, and close (OHLC) for every period. Every bar is a vertical line with small ticks on the side (left tick = open, right tick = close).
Why traders prefer them:
* More data than line charts.
* Neutral display without the visual “bias” of candlesticks.
* Suitable for traders who do not want too much flair and clean visuals.
Where they are lacking:
* Less intuitive or easy to read than candlesticks.
* They can be difficult for newbies to read swiftly.
Best application for prop traders:
* Bar charts may be well-suited for seasoned traders who don’t wish for the emotional “color bias” of candlesticks. For instance, if a large red candle makes you sell in a panic, bars could provide you with the objectivity you require. However, they are not the most prevalent selection in prop firms.
Candlestick Charts
What they are:
Candlesticks show OHLC data like bar charts, but they’re colored in (generally green/white for bulls, red/black for bears). The body is the open-to-close range, and the wicks are highs and lows.
Why they’re so popular with traders:
* The most widely used chart type, hands down.
* Visualizing intuitive—up moves and down moves jump right out.
* Candlestick patterns (such as doji, engulfing, hammers) offer actionable signals.
* Easy to pair with technical indicators.
Where they are lacking:
* Can be “too noisy” for certain traders, particularly on lower timeframes.
* Colors can also elicit emotional responses—some traders try to chase every large candle.
Best use case for prop traders:
This is the bread and butter for most funded traders. Candlesticks provide you with detail, context, and pattern recognition—exactly what you need to hit profit targets without blowing your account.
Heikin-Ashi (Custom Chart Type)
What they are:
* Smoothed candlesticks that smooth out price data to remove noise. Rather than displaying each tick’s frenzy, they emphasize the leading trend.
Why they are popular among traders:
* Perfect for marking strong trends.
* Fewer whipsaws and “false signals.”
* Prevents you from overreacting on small pullbacks.
Where they are lacking:
* Less accurate for entries/price exits—because they’re smoothed, you miss precise price data.
* Not for scalping or super-tight prop firm guidelines.
Ideal use case for prop traders:
* If you’re a trend follower with hours or days of holding trades, Heikin-Ashi can keep you on the large-scale perspective. But if razor-sharp entries are required to manage drawdown, stay with regular candlesticks.