The forex market is open 24 hours a day, which has positive and negative aspects. One of the negative aspects is that it can be hard to see what is happening just at the times you are trading.
For instance, if you trade just during the European session, or during the US session…or possibly just during the overlap period, wouldn’t it be nice to be able to isolate the session you are trading? This way you can see more clearly what is happening during the time you trade and can visually separate it from other, likely low volume, times.
The Forex Session Indicator can be put in you MT4 trading platform and will highlight the time(s) of day you wish to more clearly see.
Download the indicator and place it in your “Indicators” folder within your MT4 folder. The “Indicators” folder may be within the “Experts” folder. Then launch your MT4 platform and add the indicator: From the drop-down “Insert” menu go to Indicators, then “Custom” and select Session Highlighter.
You will then be prompted to set your parameters. Currently the indicator goes back 50 days (you can adjust this to longer or shorter). It is also set up to show one or two sessions, such as US session, or US and London sessions. There is an overlap between these two sessions, so they have different colors and the overlap period combines the London and US colors to create a third distinct color.
Since each platform may use a different time zone you will need to adjust the time so that the highlighted zones begin and end with the right session. The charts below shows an example of how the indicator can be set up. This example shows the EUR/USD 15 minute chart with the Euro and US session highlighted.
Download a forex session indicator for mt4: Download:Session Highlighter
Forex Session Indicator for MT4 Issues
When the time frame you choose involves crossing 0:00 (for instance you want to highlight 17:00 to 02:00) it creates a bit of an issue. 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.
Forex Session Indicator for MT4 Uses
This is a good tool for day traders. Volume picks up during the London and US sessions especially in a pair like the EURUSD (see Best Time of Day to Day Trade Forex). Therefore, being aware of support of resistance which occur during these session is more important that support and resistance which occurs during low volume times. The same goes for the dominant sessions in any forex pair.
Also, knowing how much a pair moves in a day is useful information. This can be attained by using an Average True Range (ATR) indicator, but no one I know trades all 24 hours, so the ATR does not really provide relevant information. Therefore, it is recommended traders track how much the pair moves while they are actually trading. For instance the EURUSD may move 120 pips per day on average over the last 14 days, but may only move 87 pips during the US session. If you are trading during the US session only, you want to be trading off US data, and not 24 hour data like what a daily ATR reading gives you. For volatility by hour of day, see the Forex Daily Stats page.
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 spread-sheet if you wish to track session relevant information.
This indicator will serve 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.
By Cory Mitchell, CMT
The Forex Trading Strategies Guide for Day and Swing Traders eBook by Cory Mitchell, CMT
Over 300 pages, forex basics to get you started, 20+ forex trading strategies, how to create your trading plan for success.