In the fast-evolving world of financial markets, having the right tools and knowledge can make all the difference between consistent profits and frustrating losses. One of the most powerful platforms used by professional traders is the MT5 trading platform , known for its advanced features, multi-market access, and customizable interface.
To truly excel in trading, it’s essential to understand not only how to use the MT5 trading platform but also how to interpret market data through the Types of chart in MT5 and how Funding Pips can impact your overall profitability—especially when holding positions overnight.
In this comprehensive article, we’ll explore each of these elements in depth and show you how combining them can lead to smarter, more informed, and more profitable trading decisions.
Why the MT5 Trading Platform Is a Game-Changer
The MT5 trading platform (MetaTrader 5), developed by MetaQuotes Software, is a next-generation trading solution that has become the go-to choice for serious forex, CFD, and stock traders worldwide.
Compared to its predecessor (MT4), MT5 offers enhanced functionality, including:
- Deeper market depth and improved order execution
- Support for hundreds of technical indicators and Expert Advisors (EAs)
- Multiple order types (market, limit, stop, stop-limit, trailing stop)
- Integrated economic calendar and news feed
- Support for hedging and netting systems
- Access to stocks, futures, and commodities in addition to forex
With its clean interface, fast execution, and backtesting capabilities, the MT5 trading platform is ideal for day traders, swing traders, scalpers, and algorithmic traders alike.
Types of Chart in MT5: A Trader’s Best Tool for Market Analysis
One of the standout features of the MT5 trading platform is the variety of Types of chart in MT5 that traders can use to analyze price movements. Each chart type offers a unique perspective on market behavior, helping traders identify trends, reversals, and key support/resistance levels.
Here are the main Types of chart in MT5 :
1. Candlestick Charts
The most popular among professional traders, candlestick charts display the open, high, low, and close prices for each time period. Each "candle" provides a visual representation of market sentiment:
- Green (or white) candles = price closed higher than it opened
- Red (or black) candles = price closed lower
Candlesticks are especially useful for identifying patterns like doji, hammer, engulfing, and shooting star—often used to predict reversals.
2. Bar Charts (OHLC)
Bar charts show the same data as candlesticks but in a simpler, minimalist format. Each bar represents the Open, High, Low, and Close (OHLC) of a time period. Ideal for traders who prefer a clean view without visual clutter.
3. Line Charts
Line charts connect the closing prices of each period with a continuous line. While they provide less detail, they’re excellent for identifying overall trends and smoothing out short-term volatility—perfect for higher timeframes like H4 or D1.
4. Renko Charts (via add-ons)
Renko charts focus purely on price movement, ignoring time. Each "brick" represents a fixed price change, making them ideal for spotting trends and filtering out market noise. Traders often use Renko charts to avoid false breakouts.
5. Point and Figure Charts (via add-ons)
These charts emphasize directional movement without considering time or volume. Favored by traders who focus on breakout strategies and long-term price targets.
Each of these Types of chart in MT5 offers unique insights into market behavior. Traders often combine multiple chart types to confirm signals and improve their decision-making process.
How to Use Chart Types in MT5 for Better Trading Decisions
To get the most out of the Types of chart in MT5 , consider the following best practices:
- Use Multiple Timeframes : Combine higher timeframe charts (like H4 or D1) for trend analysis with lower ones (like M15 or M30) for precise entry and exit points.
- Apply Technical Indicators : Overlay moving averages, RSI, MACD, or Bollinger Bands onto your preferred chart type to enhance your analysis.
- Customize Your Workspace : Set up multiple chart windows with different Types of chart in MT5 to compare perspectives quickly.
- Set Alerts : Configure price alerts based on chart patterns or key levels to stay informed even when you're away from your screen.
By mastering the Types of chart in MT5 , traders can refine their strategies, spot high-probability setups, and react swiftly to changing market conditions.
Understanding Funding Pips: A Key Factor in Forex Profitability
While the MT5 trading platform and its Types of chart in MT5 offer powerful analytical tools, one often overlooked aspect of forex trading is the impact of Funding Pips .
Funding Pips , also known as swap rates or rollover fees, are applied when a position rolls over from one trading day to the next. These values depend on the interest rate differential between the two currencies in a forex pair.
For example:
- Holding a long position on AUD/JPY may result in positive Funding Pips due to Australia’s higher interest rate.
- Holding a short position on USD/CAD might incur negative Funding Pips if U.S. interest rates are lower than Canada’s.
You can view exact Funding Pips values in MT5 by:
- Right-clicking on a currency pair in Market Watch.
- Selecting “Specifications.”
- Checking the “Swap Long” and “Swap Short” values.
By choosing currency pairs with favorable Funding Pips , traders can reduce costs or even earn passive income while waiting for price action to develop—making this a key consideration for swing traders and carry trade enthusiasts.
? Pro Tip : Some brokers apply triple swap on Wednesday to account for the weekend. Savvy traders use this to their advantage by holding positive-swap positions through Wednesday.
How to Combine MT5, Chart Types, and Funding Pips for Maximum Results
Now that we’ve covered the core components, let’s see how they work together for optimal performance:
Step 1: Download and Customize MT5
After installing the MT5 trading platform , set up your workspace with preferred indicators, alerts, and multiple chart windows using different Types of chart in MT5 .
Step 2: Choose the Right Chart Type for Your Strategy
Day traders may prefer candlestick or bar charts for precision, while swing traders might use line or Renko charts to identify long-term trends.
Step 3: Monitor Funding Pips Before Holding Overnight
Before opening any trade you plan to hold past market close, check the Funding Pips values. Favor pairs with positive or neutral swaps to reduce costs or earn passive income.
Step 4: Build a Consistent Trading Plan
Use MT5’s strategy tester to backtest your approach and ensure consistency.
Step 5: Scale Gradually and Reinvest Profits
As your account grows, increase your position size responsibly and continue refining your approach.
Common Mistakes to Avoid
- Ignoring Funding Pips : Can lead to unexpected losses over time.
- Overcomplicating Charts : Stick to 2–3 chart types that work for your style.
- Skipping Backtesting : Always test your strategy before going live.
- Neglecting Risk Management : Use stop losses and position sizing wisely.
Final Thoughts: Building a Sustainable Trading Career
Mastering the MT5 trading platform , understanding the Types of chart in MT5 , and being aware of Funding Pips are essential steps toward building a sustainable and profitable trading career. Whether you're just starting out or refining your existing performance, leveraging these tools and concepts will give you a competitive edge in the forex market.
By combining technical analysis, strategic planning, and smart cost management, you can maximize your potential and enjoy long-term success in the exciting world of professional trading.
