You're not the only one who has ever sat and looked at your MT5 charts, feeling overwhelmed by how quickly the candlesticks went from green to red. That’s exactly where a lot of traders—especially those in prop firm challenges—find themselves stuck. Trading can feel like chaos, and when you’re under the pressure of strict rules and tight risk parameters, it gets even worse. This is where Heikin-Ashi charts come in.
Now, don't think, "Great, another gobbledygook candlestick variation I'll never use," just listen. Heikin-Ashi isn't some sort of magic trick that will instantly make you a prop firm legend. But what it does do is provide transparency. It removes noise, makes trends easier to identify, and allows you to hold trades without doubting yourself every time the market skips a beat. For traders grinding through prop firm reviews, that's gold.
Let's talk about what Heikin-Ashi candles are, how to implement them in MT5, and why they can make you stand out to overcome prop firm challenges and build a funded account.
Heikin-Ashi is not a brand new trading system—it's a charting method. The name literally translates as average bar in Japanese and that's precisely how it operates: it averages out price data to produce a smoother candlestick.
As opposed to normal candlesticks, which reveal to you every market mood swing's tick, Heikin-Ashi hopes to strip away noise and expose you to the trending pattern below. The calculation for each candle is also slightly different:
Sounds math-intensive? Relax—you won't be doing any math. MT5 trading platform handles all the calculations. The important thing to remember is that Heikin-Ashi candles aren't created from unfiltered price alone; they're from derived averages. That's why they tend to remain the same color for extended periods, which makes trends so much clearer.
In prop firm trading, it's not about crazy bets or hitting a lucky big jackpot. It's about being consistent, disciplined, and keeping your equity curve alive. Heikin-Ashi assists in several important ways:
One of the largest assassins of prop firm accounts is cutting yourself to pieces in sideways markets. Heikin-Ashi will assist you in determining when a market is actually trending vs. when it's just bullshitting you. When you notice several consecutive candles of the same color with no wicks (or teeny-tiny ones) on the other side, that's a strong trend.
No trader is familiar with the agony of closing too early in a trade, only to see it go for another 50 points. Trends appear smoother with Heikin-Ashi, which makes it psychologically simpler to remain in the trade rather than panicking with each small retracement.
Prop firms in the UK usually have strict rules—no over-leveraging, no massive drawdowns, and definitely no reckless overtrading. Heikin-Ashi helps filter out the emotional rollercoaster of every small price flicker. That way, you’re less tempted to jump in and out unnecessarily.
The clearer the chart, the better your decision-making becomes. You have the ability to set stops and targets on cleaner trends, rather than on arbitrary market spikes. That equals fewer stupid mistakes, just what prop firms hope to see in a trader.
So how do you even use it on MT5? Unlike normal candlesticks, Heikin-Ashi is not pre-installed in the standard chart types. But no need to worry—adding it is really easy.
Open MT5 and navigate to the "Navigator" panel.
Not under "Indicators" and you will be able to see "Heikin Ashi." If you can't find it, you might have to download the script (there are plenty of free versions available).
Drag it on your chart.
Make the colors anything you wish. One common arrangement is green for bull candles and red for bear ones, but feel free to alter it to your taste.
And you're set. The chart will smooth out straight away, and you'll feel the difference immediately compared to regular candlesticks.
Now that you've got the charts up and running, let's discuss strategy. Keep in mind, Heikin-Ashi is not a trading system in itself—it's a tool. You still must have good setups, rules, and risk management. That being said, here are some powerful ways to utilize it in a prop firm setting.
Be on the lookout for a strong string of same-colored candles.
Ideally, there are no lower wicks on uptrending runs or no higher wicks on downtrending runs.
The direction of the trend is entered and held until the color of the candle changes.
This is Heikin-Ashi trading bread and butter. It's easy, but in a stiff test where overtrading kills the majority of traders, easy is your ally.
Heikin-Ashi also picks up trend reversals sooner. When you begin to notice smaller candles, with shadows on both sides, it tends to indicate a halt or possible change. You don't trade it blindly, but it's an excellent early sign.
Place a 50 EMA or 200 EMA on your Heikin-Ashi chart. Utilize the moving average for trend direction, and Heikin-Ashi for entry purity. For instance, only enter longs if the price is above the 200 EMA and Heikin-Ashi goes bullish.
Most prop firm traders need to demonstrate that they can lock in steady gains. Rather than going all-out or all-in, you may scale out of trades when Heikin-Ashi candles begin to have smaller bodies or wicks. In doing this, you bank gain while still allowing your trade room to run.