Rayner Teo
The Forex session indicator helps traders identify different trading sessions on a chart. The indicator has different checkboxes for different trading sessions, and the shaded area represents the entire session. The New York, Asian, and European sessions are the most used ones. The indicator is useful for short-term traders since it highlights the currently traded session and can be used for manual backtest work. Changing the colors of the sessions is also possible.
What is the Forex Session Indicator and How to Use it Effectively?
Introduction to the Forex Session Indicator
The Forex Session Indicator is a tool that many traders use to track different market sessions of the trading day. It is a tool that shows the opening and closing times of the major trading sessions such as Asian, European and American sessions. In this article, we will discuss how to use this tool effectively to improve your trading experience.
Installing the Forex Session Indicator
Installing the Forex Session Indicator is very simple. All you need to do is follow the steps given below.
Step 1: Go to the indicators list by right-clicking on your chart.
Step 2: Type “Forex Session” in the search bar to find the indicator.
Step 3: Select the Forex Session indicator created by Chris Moody.
Step 4: Once you have selected the indicator, it will appear on your chart.
Understanding the Forex Session Indicator Settings
The Forex Session Indicator is easy to use and comes with various settings that you can choose from. Let’s take a closer look at each setting.
New York Open: This setting is used to show when the New York session opens.
New York Session: This setting is used to show the entire New York session on your chart.
New York Close: This setting is used to show when the New York session closes.
Ozzie Close: This setting is used to show when the Ozzie session closes.
European Open: This setting is used to show when the European session opens.
European Session: This setting is used to show the entire European session on your chart.
The Importance of the Forex Session Indicator
The Forex Session Indicator is an essential tool for technical traders, as it helps them to identify the most volatile periods of the trading day. Knowing when the various sessions start and end can provide traders with a significant edge in the markets.
For example, knowing that the European and US session overlap tends to be the most volatile period of the day can help traders to time their entries and exits more effectively.
Interpretation of the Forex Session Indicator
The Forex Session Indicator is easy to interpret. Once you have installed the indicator, you will be able to see various coloured lines and shaded areas on your chart.
The green shaded area represents the Asian session, the blue shaded area represents the European session, and the red shaded area represents the US session.
When two shaded areas overlap, it can indicate the most volatile periods of the trading day. For example, when the blue area (European session) overlaps with the red area (US session), it can indicate a particularly volatile period of the day.
Benefits of the Forex Session Indicator for Manual Back Testing
Another benefit of the Forex Session Indicator is that it is particularly useful for manual backtesting. By manually scrolling back through your charts, you will be able to focus on specific trading sessions and test your trading strategies more effectively.
Conclusion
The Forex Session Indicator is an excellent tool for traders of all levels. It allows you to track the different market sessions of the trading day and helps you to identify the most volatile periods.
By understanding how to use the Forex Session Indicator effectively, you can significantly improve your trading experience and gain an edge in the markets.
