A 5-minute chart is a chart that displays the price action of a currency pair in intervals of five minutes. This means that the data points will each represent five minutes of price action. A 5-minute chart allows traders to follow the momentum of a currency pair on a smaller time scale and recognize changes in momentum before traders on larger time scales do.
Using a 5-minute chart means that, if you are using candlesticks, each candlestick will be charted using the price data of the last five minutes, showing 12 candlesticks every hour. The same is true for point and figure charts and bar charts. Short-term traders like scalpers use 5-minute charts to follow the micro-trends throughout the trading day, capturing small but regular profits off these trends. Momentum traders use 5-minute charts as an early warning system that momentum is waning in a particular currency pair.
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