Mastering Charts in Deriv MT5

Charts are vital tools for traders using the Deriv MT5 platform, as they allow for the visualization of price movements over time. This lesson will enhance the information provided in the video by examining the different chart types, timeframes, and customization options available in Deriv MT5. Understanding how to effectively utilize charts will improve your technical analysis and overall trading performance.
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Chart Types in Deriv MT5

Deriv MT5 provides three primary types of charts that cater to different analysis styles:

1. Line Charts: The simplest chart type, line charts connect closing prices over a specific time period with a continuous line. They offer a clear view of the overall trend and are often used for quick visual assessments of price movements.
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2. Bar Charts: Bar charts display more detailed information compared to line charts. Each bar indicates the open, high, low, and close prices for a specific time period. The vertical line of the bar shows the price range, while the horizontal ticks represent the open and close prices. This form of representation provides insights into market volatility and price movements.
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3. Candlestick Charts: Candlestick charts present price data in a visually distinct way, encapsulating the same information as bar charts but with added visual flair. Each candlestick consists of a body that shows the open and close prices, along with wicks that display the high and low prices. The colors of the candlesticks indicate whether the market moved up or down during the time period. This type of chart is particularly favored for its ability to convey market momentum and reversals.

Timeframes: An Essential Trading Tool

The timeframe selected for your charts is crucial, as it determines the period over which price movements are displayed. Deriv MT5 offers 21 different timeframes, ranging from one minute (M1) to one month (MN).

The choice of timeframe largely depends on your trading style:

• Short-Term Trading (Scalping and Day Trading): Traders focused on short-term price movements, such as scalpers and day traders, may use lower timeframes (M1 to M15) to capture quick profits from small price changes.
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• Swing Trading: Traders adopting a medium-term approach might prefer timeframes such as M30, H1, or H4 to analyze trends and price actions over a longer duration.
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• Investors pursuing long-term investments typically use daily (D1) or weekly (W1) charts to identify overall market trends and analyze significant price levels.

Switching between timeframes is straightforward in Deriv MT5. Traders can use the toolbar, the 'Charts' menu, or simply right-click on the chart to select their desired timeframe.

Customizing Your Charts

Customizing your charts in Deriv MT5 allows you to tailor the appearance and functionality of your charts to better suit your trading preferences:

• Chart Properties: Right-click on the chart and select ‘Properties’ or press F8 to open a menu where you can adjust various settings. In the 'Common' tab, you can choose between line, bar, or candlestick charts, enable ‘Chart Shift’ for real-time updates, and apply precise scaling options.
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• Display Options: Under the 'Show' tab, you can customize what information is displayed on your charts, including the trading symbol name, timeframe, OHLC lines, and visibility of Bid and Ask lines.
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• Color Schemes: In the 'Colors' tab, you can select your preferred color combinations for different chart elements. Whether you prefer dark backgrounds with bright candlesticks or light themes, the ability to customize color schemes enhances chart readability.

Furthermore, you can organize multiple charts according to your trading needs. Simply use the ‘Windows’ menu to select your preferred arrangement type for optimal viewing.
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Conclusion: Elevating Your Trading with Effective Chart Use

Mastering the use of charts in Deriv MT5 is essential for enhancing your trading capabilities. By understanding different chart types, utilizing appropriate timeframes, and customizing your views, you can improve your technical analysis significantly. As you progress in your trading journey, continue to refine your charting skills and apply what you learn to make informed trading decisions.