If you’re new to prop trading, you’ve certainly come to the conclusion that it’s more important to show your ability to trade regularly than it is to make outstanding trades.
Prop firms don’t give money to random people. They seek traders who can control their emotions under duress, have a sound plan, and comprehend risk. Additionally, if you know how to use MetaTrader 5 (MT5) well, you have a significant advantage if you use it as your platform.
There is more to MT5 than simply adding a few indicators and crossing your fingers. With its many capabilities, this powerful trading terminal can help you stay ahead of the competition, read the market, and identify high-probability setups. let’s see MT5’s charting and analysis tools—what they do, how to use them effectively, and why they matter for passing a prop firm challenge.
The Power of Charting: Why MT5 Stands Out
A lot of traders underestimate just how important charting is. Your ability to read price action, spot trends, and react to market conditions directly impacts your success.
MT5 provides:
21 different timeframes (from 1-minute to 1-month)
38 built-in technical indicators
44 analytical objects (trendlines, Fibonacci tools, etc.)
Multi-charting with multiple asset classes
Customizable templates and indicators
Basically, everything you need to analyze the market properly.
But here’s the catch—more tools don’t automatically mean better trades. If you throw every indicator onto your chart, you’ll just confuse yourself. The key is knowing which tools to use and when.
Candlesticks and Price Action: The Foundation of Everything
Before we even touch indicators, let’s get one thing straight:
Price action is king.
No matter how many fancy indicators you use, your ability to read raw price movement will always be your biggest advantage. And that starts with candlestick patterns.
Key Candlestick Patterns You Should Know
Engulfing Candles which is a strong reversal sign, especially at key levels.
Doji Candles that indicate indecision—often a signal of an upcoming move.
Pin Bars (Hammer & Shooting Star) to show rejection of price levels, hinting at reversals.
Inside Bars that signal potential breakout zones.
MT5 lets you customize your candlestick settings for better visibility. Adjust the colors and wicks so you can find these patterns quickly.
Pro Tip: Set up your charts so price action is always the focus—too many indicators can hide what’s really happening.
Trend Analysis: Identifying Market Direction
If you’re trading with a prop firm, you need to prove you can trade with the trend. Why? Because trading against the trend is like swimming upstream—you’ll get exhausted and eventually wiped out.
How to Spot Trends on MT5
MT5 peovides several ways to identify trends including:
Moving Averages (MA): The simplest way to see direction. The 50 EMA and 200 EMA are popular for spotting long-term trends.
Trendlines: Drawn manually to connect higher lows in an uptrend and lower highs in a downtrend.
The ADX (Average Directional Index): Measures trend strength—above 25 means a strong trend, below 25 means weak momentum.
A good rule of thumb? Zoom out and look at higher timeframes first. If the daily and 4-hour charts are trending up, don’t try to short on a 5-minute chart—it’s just asking for trouble.
Support and Resistance: The Market’s Invisible Barriers
Think of support and resistance levels as the battlegrounds of the market. These are price levels where buyers or sellers consistently step in, making them great places to enter or exit trades.
How to Find Key Levels in MT5
Manually draw horizontal lines at previous swing highs/lows
Use MT5’s built-in Fibonacci retracement tool
Look for psychological price levels (e.g., 1.2000, 1.2500, etc.)
Check volume spikes at specific levels
Pro Tip: The best support and resistance levels line up across multiple timeframes. If a level holds on the daily, 4-hour, and 1-hour charts, it’s probably a strong one.
Indicators That Actually Help (Without Overcomplicating Things)
A lot of traders overload their charts with indicators, thinking more data equals better decisions. In reality, too many indicators just cause confusion.
Here are three high-impact, low-noise indicators that actually help:
Moving Averages (MA)
Great for spotting trends and dynamic support/resistance. The 50 EMA and 200 EMA crossover is widely used for trend confirmation.
Relative Strength Index (RSI)
Tells you if the market is overbought (above 70) or oversold (below 30). Use it with price action to confirm reversals.
Bollinger Bands
A powerful volatility indicator. When the bands squeeze, expect a big move soon. When price touches the outer bands, look for possible reversals.
Remember, indicators should confirm your analysis, not dictate it.
The MT5 Economic Calendar: Avoiding the News Landmines
The best prop firms have strict risk rules. The last thing you want is to get stopped out because you forgot to check the news.
Luckily, MT5 has an economic calendar built in. Use it to track major news events like:
Non-Farm Payrolls (NFP)
FOMC rate decisions
CPI (inflation reports)
Central bank speeches
Some prop firms ban trading during high-impact news. Check the rules before placing a trade!
Multi-Charting: The Ultimate Edge in MT5
One of MT5’s best features? You can have multiple charts open at once—even for different assets or timeframes.
Use this to:
Compare multiple timeframes (e.g., daily, 4-hour, and 1-hour)
Watch correlated assets (like EUR/USD vs. DXY)
Monitor multiple prop firm accounts at the same time
If you’re serious about prop trading, multi-charting is a must.
