A forex session indicator breaks up the hour trading day into visual segments, so you can see how the price acts while different markets—such as London, New York or Tokyo—are open. The forex market is open 24 hours a day, and that has both positive and negative aspects.
One of the negative aspects is that it may be hard to see what is happening just at the times you are trading, especially if looking back over prior days. For example, you may only trade for a 2-hour window during the London or US session. It might be nice to highlight this single period, every day, so you can more easily see it on the chart.
Or you may be interested in testing out a strategy that only pertains to when the US market is active, or a strategy designed around the London open. A session indicator can mark off specific times on your chart, making it easier to go back and test strategies or see how something worked in the past. Then launch your MT4 platform and add the indicator: You will then be prompted to set your parameters. Currently the indicator goes back 50 days, and you can adjust this to longer or shorter.
If there is a time overlap between these two sessions, which have different colors, the overlap period combines the two colors to create a third distinct color. Switch your MT4 chart to a one-minute chart, and look at the time of the most recent price bar. On the ForexMarketHour site, alter the time zone in the drop down box so that the time in the little green box matches the current time on your MT4 chart. The chart below shows an example of how the indicator may be set up.
The indicator also marks the high and low for each session, only coloring in the area the price covered. Download the forex session indicator for MT4: When the time frame you choose involves crossing 0: Easiest fix is to just highlight one session for these pairs and leave the optional second session blank, or you may need to tinker a bit with the times to get something that works for you.
The colors you choose will create a new color if they overlap. For example, in the chart above, the London session is highlighted yellow and the US session in a bluish color. When they overlap—that is when both markets are open—they create the color green. May traders like this overlap period for trading , as it is frequently one of the most volatile times of the day. This is a good tool for day traders. Therefore, being aware of support of resistance levels that occur during these sessions is more important that support and resistance which occurs during low volume times.
The same goes for the dominant sessions in any forex pair. By highlighting the sessions you can quickly see where and when the action is occurring. It also makes it much easy to keep track of stats in a spreadsheet if you wish to track session relevant information. This indicator serves little purpose for longer-term traders who focus on daily charts. Anyone who focuses on time frames shorter than the daily chart may benefit from having this. There you will find loads of indicators you can install with the click of a button.
Sort by name then can scroll through. Right-click on an indicator and select Download. This will add it to your indicator list in MT4. From the Code Base you may find another indicator you like better. It leads you step-by-step through a process for becoming a successful trader, as well as providing strategies and trading plans so you can use to build your capital in a risk-controlled manner.More...