Forex Session Indicator MT4
The forex session indicator, as the name suggests is an indicator designed for the MT4 trading platform. This indicator is very simple for the fact that it plots the different trading sessions directly on the MT4 charts.
Traders might already know that the main trading sessions as the Asian trading session, the UK or the European trading session and the U.S. trading session.
The indicator adds value to the trader because while the regular MT4 trading platform plots the daily session or the weekly or yearly, it does not show the three different trading sessions.
In this aspect,
the forex session indicator is quite useful for intraday traders. It is important to note that this indicator is more suited for intraday time frames ideally from 5-minute to 15-minute charts.
You can of course apply the indicator to the 30-minute chart but the indicator does not add value for time frames higher than 1-hour.
For example, using the forex session indicator for MT4 on the daily chart time frame does not add any meaning as the indicator is rendered useless because its basic purpose is to show the different forex session times on the chart.
There are some traders who make use of intraday trading and focus more on the overlap of two trading sessions or the start of a new trading session. In this case, the indicator can be a valuable tool.
Below is an example of the indicator added to a 15-minute chart.
Figure 1: Forex Auto Session Indicator for MT4
Configuring the forex session indicator for MT4
The configuration aspect of the forex session indicator for MT4 is fairly simple. The indicator is called the auto sessions and as the name suggests, it is a forex trading session highlighter.
The configuration window has some standard settings which are easy to identify.
Figure 2: Forex Auto session indicator MT4 configuration
SessionNames: This is a label and no changes are to be made here. The Session names are divided into Tokyo, Frankfurt and New York. With the forex trading sessions divided into three sessions, there has to be some adjustment made.
SessionInfo: This is also a label and the value simply show “Chart times Below”
SessionBegins: This value can be changed. The default values are set to GMT session. However, depending on your forex broker’s time zone you can adjust the opening time of the sessions. For example, if the GMT value shows 00.00, then you could adjust one session’s opening time to 02.00 to reflect a GMT+2 time zone broker.
SessionEnds: This field selects the end time of the respective forex trading sessions. These values are also based in GMT time zone and can be changed. The separator between the time zones is the / symbol.
SessionDisplays: This section allows you on how the sessions are to be displayed. No changes are required here.
Color1, Color2, Color3: The next three fields allows you to customize the colors of each time zone. Depending on whether you are using a dark or a light background, you can change the colors of each time zone separately.
FillColor: The default value is true. This fills the rectangle areas of the time zones.
FrameWidth and FrameStyle: You can add further customization to the indicator by selecting the style and the width to separate individual sessions.
ShowPips: The default value is set to true. This will show the average number of pips in the session’s range. This means that if the high and low of the Asian session was a difference of 100 pips, then you can see this value.
As you can see, most of the customization of the auto session indicator is to do with the visual representation and nothing more in terms of functionality.
Pros and cons of using the Forex session indicator MT4
The forex session indicator or the auto session indicator is very simple to use. Intraday traders can find this indicator to be very valuable when they want to trade the volatility that comes during the open and the closing periods of a trading session.
The fact that the indicator also allows you to plot the number of pips in range is a great value add to this tool.
But on the flip side, the fact that traders need to find out what time zone their forex broker uses and adjusting the indicator can take a while. Furthermore, it is better if the settings are saved in order not to lose them.
The indicator is only suited for intraday traders. Therefore, if you are a swing or a position trader the indicator does not add any value besides bringing some clutter to your trading screens. Even for intraday traders, not many focus their trading strategies based on the trading sessions.
While the indicator can easily stay in the background of the charts, it does not interfere with any other technical indicators that you would want to use.
An added functionality such as showing the alert for the stat of a new trading session, or a breakout from the previous trading session would have certainly added value for traders.
As such, the forex auto session indicator is best suited more as a visual companion than anything else.
although the forex session indicator works on smaller time frames, it brings value only if your trading strategy has something to do with breakout trading during the overlap of the trading sessions.
Traders will also notice that once they are familiar with the time zones and the forex trading sessions, they can simply remove the indicator. This is because once you are familiar with what time a forex trading session will open and close, you can automatically expect to see some volatility.
This familiarity eventually eliminates the need of continued use of the forex auto session indicator.
With some fair amount of flexibility to how you can configure your trading indicator, you can easily customize the forex session indicator for MT4 to brighten up your charts. The fact that it does not interfere with any other indicators or EA’s is also one of the advantages of this indicator.