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.
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:
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.
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.
What they are:
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:
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.
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:
Where they are lacking:
Best application for prop traders:
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:
Where they are lacking:
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.
What they are:
Why they are popular among traders:
Where they are lacking:
Ideal use case for prop traders: