Trading 102: Using Visual Cues from a Naked Chart to Form a Trading Bias / Setting Up a Naked Chart on MT5

Step 1: Setting Up a Naked Chart on MT5

1. Open MT5 and select a currency pair or CFD to trade (e.g., EUR/USD, GBP/JPY, or Gold).
2. Open a new chart and switch to a timeframe of M5 (5-minute) or M15 (15-minute) for intraday observation.
3. Remove all indicators by right-clicking the chart > Indicators List > Delete All.

Now, you’re looking at pure price movement—this is what professional traders call “price action.”

Step 2: Observing Price Movement & Creating a Bias

Before placing any trades, watch how price behaves:
 ✅ Is price trending up (higher highs, higher lows) or down (lower highs, lower lows)?
 ✅ Is price moving in a range (sideways movement)?
 ✅ Are there sharp moves or slow drifts?

How to Form a Trading Bias:

1. Identify Trend or Range – If price is making higher highs and higher lows, you might bias long (buy). If making lower highs and lower lows, bias short (sell).
2. Look for Momentum – If candles are large and strong in one direction, bias towards that direction.
3. Observe Reactions to Key Levels – Does price reject the same level multiple times? If so, it may reverse there.

Example: If EUR/USD is making higher highs and higher lows, your bias would be to buy dips rather than sell.

Step 3: Trading Based on Your Bias

Rules for This Exercise:

🔹 You must always have an open trade for the next 2-4 hours.
🔹 You can only trade in the direction of your bias.
🔹 If you exit a trade, you must immediately find another entry.
🔹 Journal every trade with the reason for entry and exit.

Step 4: Journaling Your Trades

Keep a simple trade log to track decisions:

After the session, review your journal and ask yourself:
 ✅ Were my trades mostly in line with my bias?
 ✅ Did I make impulsive decisions?
 ✅ How did it feel to always be in the market?

Step 5: Understanding Overtrading & Performance

Being in the market at all times may feel productive, but over time, you’ll notice:
 🔻 Fatigue & Emotional Trading – The longer you’re exposed, the more likely you are to make impulsive trades.
 🔻 Poor Trade Quality – Some trades will be forced because you “must” be in the market, even when no clear opportunity exists.
 🔻 Increased Spread & Commission Costs – More trades mean more costs, reducing overall profitability.

Key Takeaway:

Overtrading does not equal better performance. High-quality trades matter more than being constantly active.

Conclusion: What You Should Learn from This Lesson

✅ How to observe a naked chart and form a trading bias.
✅ How to follow the market with your bias.
✅ The impact of always being in the market on performance and psychology.
✅ The importance of journaling trades to track decision-making.