Market Trading Session Indicator guideline
Forex session MT4 indicator divides the 24-hour forex trading day into perceptible segments. Consequently, we can see how the price acts while different markets are open. The main forex markets are New York, London, Tokyo, and Syndey. Hence, the Session indicator will scheme four major forex sessions on your MT5 terminal. This indicator becomes useful if we are interested in testing a strategy specific to a certain forex session. Moreover, the Trading Forex session indicator will show you markets schedule on your Tradingview chart. Which will make it easy to know which currency pairs to trade in the FX market.
Forex Session Indicator
What is trading sessions indicator ?
The forex market trading sessions notifies traders about each forex trading session in MT5 and its time zone. In fact, the Forex market is 24/5 active. Also, 4 sessions compose the 24/5 activity. The European session (London, Frankfurt), the American session (New York, Chicago), the Asian session (Tokyo), and the Pacific session (Sydney). It is a very simple indicator to use. Both advanced and beginners can use it. Next, we will see the period of each session, the characteristics of every session. Finally, we will discover the recommended currency pairs per session using this forex strategy. In conclusion, the trading time zones aim to determine which session is running in forex in order to trade the best currency pairs.
What are the 4 sessions in Forex?
American session: (1:00 PM-10:00 PM GMT)
The most active trading session for Forex is the US session. This session has the largest trading volume. And that occurs within the first two hours of the session when both the London and NY sessions are open. During the New York session, there are often sharp changes in the currency exchange rate due to intensive trading. This is especially true for currency pairs denominated in US dollars. Trading US currency pairs is risky. But it can also yield large profits for market participants who have prior experience with aggressive strategies. In short, this forex indicator plots the American session.
European session: (7:00 AM- 4:00 PM GMT)
The European session is special. To explain, its opening coincides with the active hours of the Asian session. Also, its closing coincides with the American session’s opening. The most common currency pairs in the European session are EUR/USD, GBP/USD, and USD/CHF. The European trading session is ideal for techniques that rely on large price swings to generate profits. Scalping, for example, is a good strategy to make money during this session. The European Session is also an appropriate time for fundamental analysis strategies. Because this is when the majority of news releases are released. In short, this forex indicator plots the European session.
Asian session : (00:00 AM-9:00 PM GMT)
Most of the time, this session is characterized by low volatility. Nevertheless, if our trading strategy is aligned with the characteristics of Asian exchanges, trading during this session can be profitable. As a rule, such strategies involve trading currency pairs with the Japanese yen. Usually, the USD/JPY pair is most volatile during the Asian session. These strategies should involve trading pairs with the Japanese Yen. The USD/JPY has the highest volatility in this session. Other actively traded currency pairs are NZD/USD, and AUD/USD. This is because some active hours of the Asian exchange coincide with those of the Sydney session. In conclusion, this indicator plots the forex Asian session.
Pacific Session : (9:00 PM-6:00 AM GMT)
The start of a new trading day kicks off with this session. This session has the lowest volatility and the lowest volume of transactions. At this time, most market players are not interested in trading, as price actions are usually negligible and profit-free. During this session, price movements are very slow and profit-free. A big portion of market participants prefers not to trade throughout the Pacific session. Early Pacific sessions, on the other hand, may be a good period for traders who want to minimize their risks as much as possible. In conclusion, this indicator plots the Pacific forex session.
How to use forex Session Indicator ?
Every forex trading session on Tradingview has its own unique characteristics. We should consider these characteristics to choose our forex strategies accordingly. First of all, we need to know the trading hours of each session. Secondly, we choose the most appropriate moment to implement our trading strategy. Furthermore, some strategies work exclusively at the Pacific session. Some other strategies work best when the market is very volatile, for example when the New York session and the London session coincide. For instance, traders with aggressive strategies can trade sessions with high trading volumes. On the opposite, traders who seek to minimize their risks can trade sessions with low trading volume. Below is an example of the forex trading hours and how they overlap. Note that this graph is valid for the time zone of “GMT – 1”.
Download Trading session indicator for MT4
Trading session indicator for MT4 is a MetaTrader 4 to identify forex session. We can use this indicator on a 30-minute chart, but it adds little value for time frames longer than one hour. The purpose of using the forex session indicator for MT4 on the daily chart is to show the different forex sessions. If we use the indicator on a 2 hours chart or more, the indicator will not be significant anymore.
Download Trading session indicator for MT5
Trading session indicator for MT5 is for MetaTrader 5 to calculate the forex sessions. That is why we need to download it and add it manually in order to use it. Intraday traders love this indicator because it will notify them when two sessions overlap. Many traders choose to trade when two sessions are active at the same time. In this case, the forex indicator for MT5 adds real value.
Download Trading session indicator for Tradingview
Trading session indicator for TradingView assists traders in choosing the currency pairs that they should trade with. For example, If the European session is active, the trader would automatically know the best pairs to trade. Which are EUR/USD, GBP/USD, and CHF/USD. Also, if the Asian session is active, then the trader would know that trading JPY/USD is his best option. This is an illustration of the forex trading session indicator on the Tradingview terminal.
The forex market is open 24 hours a day, five days a week, allowing dealers to trade at any time of day or night. Every trading session is 9 hours long. It is critical for traders to be aware of the Forex market opening hours. They must be conscious of the opening and closing timings of the foreign exchange markets, also the 4 main trading sessions. The indicator automatically alerts you about which session is running in Forex.