Time Zone Indicator
The Time Zone Indicator displays the trading sessions, their time and the current session the market is at.
Categories: MT4, Informational
Forex markets open 24 hours every day except on Saturdays’ and Sundays’. However, the market has different sessions that open in different time zones. These time zones are the Asian, European and the North American Sessions.
Forex market have been observed to behave in respect to a particular time zone. Moreover, not all time zones are advisable to place any order. Some trading sessions such as the London sessions are more liquid and volatile. Other sessions such as the Sydney session are thin. Therefore, every trader must keep watch of each forex time zone, and this can be achieved using the Time Zone Indicator.
The Foundation
The Time Zone Indicator displays the trading sessions, their time and the current session the market is in. This indicator shows the New York, London, Sydney and Tokyo trading sessions. This indicator displays the current trading session in a red color on the chart as seen in the diagram below.
From the USD/JPY H1 chart above, the market is currently in the Sydney trading session. This is displayed by the Time Zone Indicator in red color. Once the Sydney session ends, the indicator will update the chart to the next session.
This indicator is very useful because traders can know when an important trading session begins in order to open positions. Traders can also know when a particular session ends with this indicator so as to close their trades. Thus, with this indicator, forex traders can know when to enter and exit the market.
How to use the Time Zone Indicator
To use the Time Zone Indicator for MT4 effectively, traders must know the characteristics of each trading session.
The first session to open is the Asian sessions. The Asian sessions include the Tokyo and the Sydney sessions. These sessions account for approximately 20% of all forex transactions.
Liquidity can be quite thin at times because of low trading volumes. Because of this thin liquidity, most currency pairs will trade within a range. During the Asian sessions, economic news from Australia, New Zealand and Japan are out. Stronger moves in pairs that contain JPY, AUD and NZD are seen.
The Second Session is the London session. The London session is the largest of all the sessions. Over 32% of all transactions pass through the London session. The London Session is known for its high liquidity due to high trading volume.
The session has the lowest spread. Volatility slows down a bit in the middle of the London period until the New York Session. Markets trend may at times reverse just before the session ends, and London traders decide to lock their profit.
The last session is the New York session. This session is the second largest session after the London session. The New York Session account for roughly 19% of all forex transactions.
This session is known for its big market-moving potential. In fact, 85% of all trades involve the USD. The Session has high liquidity when it overlaps the London Session. It is at this overlap that the forex market experiences the highest trading volume.
With this explanation, the best time to trade using this indicator is when the London and the New York sessions overlap. This is because the forex market is most liquid and volatile during this period.
The higher liquidity and volatility in this overlap is as a result of the London (the largest sessions with largest traders) overlapping with New York (the second largest sessions).
This time is where market makers really step in to trade. It is, therefore, the best time professional traders place their buy and sell orders.
Conclusion
The Time Zone Indicator for MT4 helps traders to know the trading sessions the market is on, and to make critical decisions.
You must be logged in to post a review.
Copyright 2025
Reviews
There are no reviews yet.