You opened a forex chart, but the bars, wicks and lines make no sense yet. That is a common place to get stuck.
The short answer: learn three things, which are what one candlestick means, what a timeframe is and what a moving average is. They cover most of what you see on screen. The official MetaQuotes help (checked on 24 October 2026) says MT5 offers 21 timeframes.
After reading, you can open a chart in MT5 and show a timeframe and a moving average.
Conclusion: start with three basics
A chart plots price movement along a timeline. The terms look many, but the three basics below are enough to start.
The following sections explain each one with sample numbers. All numbers in this guide are made-up examples for explanation, not real market prices.
- One candlestick shows the open, high, low and close for a set period
- Changing the timeframe changes how the same price movement looks
- A moving average is a line joining the average price over a set period
- Indicators are calculated from past prices and do not guarantee the future
- Lines and signals are one input for judgment, not an instruction to trade
How to read a candlestick: four prices, bullish and bearish
A candlestick shows how price moved during one period in a single shape. The official MT5 help lists "Japanese candlesticks" as one of the chart display types.
The terms below are general explanations and contain no numbers. If the close is higher than the open, the candle is bullish. If it is lower, the candle is bearish. Colors and fills depend on your platform settings, so check the screen you use.
Sample example: on a 1-hour chart, the open is JPY 150.00 and the close is JPY 150.20. If the high is JPY 150.35 and the low is JPY 149.90, the close is above the open, so the candle is bullish. The candle body is JPY 0.20, the upper wick is JPY 0.15 and the lower wick is JPY 0.10. These numbers are made up for explanation.
A long body means price moved a long way from open to close within the period. A long wick means price moved a lot during the period and was pushed back.
- Open: the first price of the period
- Close: the last price of the period
- High: the highest price of the period
- Low: the lowest price of the period
- Candle body: the thick part between the open and the close
- Wick: the thin line extending from the body to the high or the low
What is a forex timeframe? From 1 minute to 1 month
A timeframe is the length of time one candlestick represents. On a 1-hour chart, one candle is 1 hour. On a daily chart, one candle is 1 day.
The official MT5 help says MT5 can display 21 timeframes, from 1 minute to 1 month. According to the MT4 and MT5 comparison on this site, MT4 has 9 timeframes.
Note: the same price movement looks different on different timeframes. Short timeframes show small ups and downs clearly. Long timeframes smooth them out and show the larger flow. Neither is correct on its own, and you choose by purpose.
Sample example: six alternating bullish and bearish candles on a 1-hour chart can combine into a single bullish candle on a daily chart. The jagged movement is hidden inside one candle on the longer timeframe.
- Short term: M1 to M15 (1-minute to 15-minute charts)
- Medium term (day trading and similar): M30 to H4 (30-minute to 4-hour charts)
- Long term: timeframes longer than those (used for trend analysis)
- Source: MetaQuotes MT5 official help, charts chapter, checked on 24 October 2026
Chart types: candlestick, bar and line
MT5 price charts can be shown in three types: bars, Japanese candlesticks and a broken line (line chart). This is what the official help describes.
You can switch types from the toolbar command, the chart menu, the chart context menu or the chart properties. Getting used to candlesticks first is easier to follow.
The chart types are listed in the official MT5 help (checked on 24 October 2026). The feature descriptions below are general explanations.
- Candlestick: shows the four prices with a body and wicks, so the open-close relation is visible from the shape
- Bar: shows the four prices with one vertical line and short ticks on the left and right
- Line: shows only a line joining prices, so small price ranges are not visible
What is a moving average? How it works and the four types
A moving average turns the average price over a set period into a line. The official help describes it as showing the average price of a financial instrument over a certain period.
Sample calculation: if five closing prices are 150.0, 150.2, 150.4, 150.2 and 150.2 yen, the total is 751.0 yen. Dividing by 5 gives 150.2 yen, which is one point of a 5-period simple moving average. Each time a new candle forms, the period shifts and the calculation is repeated. Joining those points makes the line. The numbers are made up.
A shorter period keeps the line close to price and makes it move in small steps. A longer period makes it smoother. Which period suits you depends on your purpose.
- Simple moving average (SMA): add up the closing prices over the period and divide by the number of periods
- Exponential moving average (EMA): gives more weight to the latest closing prices
- Smoothed moving average (SMMA): the first value is a simple moving average, then each value is updated using the previous one
- Linear weighted moving average (LWMA): gives the latest data more weight than older data
- Source: MetaQuotes MT5 official help, moving average page, checked on 24 October 2026
Steps to show a chart and a moving average in MT5
This section covers only the operations confirmed in the official MT5 help. MT4 screens may use different labels, so follow the guide for the platform you use.
Note: try it in a demo account first. You can check how the trading platform works without using real funds. The differences between MT4 and MT5 are covered in the basic guide on this site, MT4 vs MT5.
- Step 1, choose the chart type: select candlesticks from the toolbar command, the chart menu or the chart context menu
- Step 2, switch the timeframe: use the Timeframes toolbar. You can also change it from the chart settings menu or the chart context menu
- Step 3, add a moving average: drag Moving Average from the Navigator window onto the chart. You can also add it from Insert, then Indicators, or from the indicator button on the Standard toolbar
- Step 4, check and adjust the settings: right-click the line on the chart and open Properties. You can change the line color and width, and choose the price used for the calculation (close, open and so on) in Apply to
Cautions when reading charts, and what to do next
Technical indicators such as moving averages are numbers calculated from past prices. They do not promise future prices.
The official MT5 help explains that a buy signal occurs when price rises above a moving average and a sell signal occurs when it falls below. The same page also says the approach follows the trend rather than trying to buy at the bottom or sell at the top. Note: this is the official help describing how to read an indicator. It is not an instruction to trade, and a signal can still end in a loss. You decide whether to trade and how much.
Once you can read charts, the next step is to learn how orders work and what trading costs are. Knowing the order types connects the prices on the chart to actual orders. This site also has guides on spreads and commissions and on leverage and stop out.
- Do not rely on a single indicator, and look at the price movement itself
- A change of timeframe can change what the same line seems to mean
- Price movement can change a lot around economic indicator releases
- Decide the size of a possible loss against your margin first, as part of money management
- Next: check the order types (market, limit, stop order)
- Next: learn how spreads and commissions work as trading costs
- Next: check how leverage and stop out are related
- Next: understand the risk in numbers and build a money management approach
Frequently asked questions
Q. What should I learn first when reading forex charts?
A. Learn three things: what one candlestick means, timeframes and moving averages. A candlestick shows the open, high, low and close in one shape. A timeframe is the period one candle represents, and a moving average is a line joining the average price over a set period.
Q. How do I tell a bullish candle from a bearish candle?
A. If the close is higher than the open, the candle is bullish. If it is lower, the candle is bearish. For example, an open of JPY 150.00 and a close of JPY 150.20 (sample numbers) gives a bullish candle. Colors depend on settings, so check the screen you use.
Q. What is a forex timeframe and how many are there?
A. A timeframe is the length of time one candlestick represents. The official MetaQuotes help says MT5 can display 21 timeframes, from 1 minute to 1 month. MT4 has 9.
Q. What is a moving average?
A. It is a line made from the average price over a set period. MT5 has four types: simple, exponential, smoothed and linear weighted. Because it is calculated from past prices, it does not promise future prices.
Q. How do I change the timeframe on an MT5 chart?
A. Use the Timeframes toolbar. You can also change it from the chart settings menu or the chart context menu. MT4 screens may use different labels.
Q. Will I make a profit if I trade exactly on moving average signals?
A. No profit can be promised. The official help describes how signals are read, but a signal can still end in a loss. The decision to trade is yours and carries your own risk.
Sources and conditions
FX Textbook is edited from official platform documentation, broker-published information and applicable terms where available. Account conditions, services and rules can change. Confirm the current terms in the broker's registration flow before you act.
FX Textbook is an independent information site, not a broker or provider of personal investment advice. Forex and CFDs involve risk. You may lose some or all of your invested capital. No trading result is guaranteed.
NEXT STEP
Once you can read charts, compare the trading platforms
Knowing the differences between MT4 and MT5 helps you choose the screen and account type to use. The basic guide also covers the number of timeframes and order types.