In this article, we are going to present an indicator for Metatrader 4 designed to show the main sessions of the Forex market in the price charts of the markets we are analyzing. Basically, it shows the beginning and end of each of the most important market sessions and the periods when they overlap. Graphically, this indicator displays the following trading sessions:
- American market session
- European/UK Market Session
- Asian Market Session
- The periods in which two sessions overlap each other (usually they are periods of high activity in the markets).
Forex brokers that offer Metatrader 4 do not show market sessions on price charts, therefore, this indicator of trading sessions can be very useful, especially when the trader uses trading strategies whose profitability depends on the period in which they are used. There are strategies that are more recommended for high volatility markets, while other systems are more suitable for low volatility markets.
The download link of this indicator is at the end of this article.
How does the market session indicator work for MT4?
This tool works in a simple way. Once the trader loads the market sessions indicator on the charts, the price char will show 3 boxes with different colors, each one representing the three trading sessions mentioned above, that is, the sessions of the United States, Europe/United Kingdom and Asia, as the following graph shows:
As you can see, in addition to the three main market sessions, the indicator also shows the periods in which two sessions overlap, using different colors that indicate the times when these overlaps occur. This can be quite useful since when two market sessions overlap, the activity of the traders usually increases due to the fact that there are more participants trading.
Settings of the Market Sessions Indicator for MT4
This session indicator is set by default in GMT hours. The user can change the time settings and the colors of the boxes corresponding to the sessions according to his or her preferences. However, I don’t see the point of changing the color or time settings, so I leave all the default indicator settings as shown in the image below:
But, as we already said, the user can change the default settings without problems. You can adjust the opening and closing of trading sessions to your own time periods and the color of the market sessions.
Forex trading strategies in which this indicator can be useful
If you are using a Forex trading system that is designed to produce higher returns specifically in one of these market sessions, then this indicator can be especially useful.
There are systems that are designed to work mainly in low-movement markets, which move in ranges, such as those presented in the Asian session. On the contrary, other systems were created to take advantage of the more extensive movements of a trending nature, which occur in periods such as the American session and the European session, and in the overlap between the two sessions.
You can download this indicator at no cost, along with instructions for its installation, through the following link: