It may seem unusual at first—charts are charts, right? A candlestick is a candlestick. But when you look a little deeper, you begin to see that how information is presented to you influences how you perceive it. And when you're under the microscope in the prop firm setting, with hard drawdown limits and performance targets, that mental advantage can be the difference between remaining funded and being shown the door.
Let’s discuss why chart types matter, how they influence your psychology as a trader, and which ones tend to work best in the high-pressure world of prop trading on MT5.
When most traders first start using MT5, they remain on the default candlestick chart. It's what they're used to, it's ubiquitous, and nearly every strategy posted online uses it. But here's the catch: not everybody interprets market data in the same fashion.
Charts are essentially story-telling devices. They take unprocessed price action and mold it into something your brain can interpret. And based on the story you see, your decision may be altered. For instance:
The key here is that each chart type presents the market in a different emotional light. In funded firm trading, where psychology can make or break you, that matters more than most people realize.
If you've ever been in a prop firm challenge or traded a funded account, you already know how it feels compared to trading your own account. All of a sudden, there's a layer of responsibility. There are hard and fast rules: don't hit daily drawdowns, don't over-leverage, don't hold old news events, etc.
Even when you believe in your abilities, the psychological weight of those limits can beget doubt. You overthink entries, procrastinate on exits, and even make impulsive moves just to "do something."
That's where chart type enters the picture as a mental trick. The correct chart can:
Imagine it like putting on the correct glasses. With the incorrect prescription, everything's cloudy and painful. With the correct one, the market makes perfect sense.
Candlesticks are the major types of charts in MT5. They're expressive, they're elaborate, and they provide you with loads of information in a dense package. That's why they're so widely used in retail as well as prop firm setups.
But they can be intimidating. The red-and-green flashing, up-and-down pattern makes it a cinch to feel like you're missing something. Prop firm traders tend to get glued to every candle, micromanaging trades rather than allowing setups to mature.
The psychological advantage of candlesticks:
If you're one of those folks with FOMO or overtrading in a prop firm test, candlesticks may actually exacerbate the issue instead of resolving it.
Waving goodbye to candlesticks and moving to a line chart may seem almost too easy initially. Only one line between closing prices? Where are the wicks, the opens, the highs and lows?
But that's the best part. Line charts eliminate the noise. They give you the overall trend without the distractions. For prop traders who get nervous watching every candle wick, this can be a psychological lifesaver.
The psychological advantage of line charts:
The downside is that you sacrifice detail. But if your prop trading strategy involves catching bigger moves and is less concerned with scalping, line charts will keep your head clean.
Another overlooked chart type for prop traders on MT5 is Heikin-Ashi. It filters out price action by averaging values, so trends are neater and pullbacks are less choppy.
Psychologically, it can be a wonder. Rather than losing your cool when you observe three bearish candles in the midst of an uptrend, Heikin-Ashi may still present green bars to you, and this gives you assurance to remain in.
The psychological advantage of Heikin-Ashi:
The catch? It's not real-time price accuracy because it is smoothed data. So if you scalp or trade news in a prop firm, you may find it to be too slow.
