Trading Hours Indicator

Trading Hours Indicator

A great helper for forex traders. Trading Hours indicator helps to be aware of when the European / American forex trading session begins / ends. It doesn’t repaint.

The Trading Hours is a super simple forex Indicator.

It helps you to be aware of which forex session is open now.

Add it to the chart in the MT4 terminal, and you will see a red-blue histogram in the zone below the price bars.

How to read the Trading Hours Indicator for MT4
The indicator represents a histogram, which begins with zero. The zero value (marked by an arrow with a number 1) must coincide with the beginning of the day.

As time moves forward, the bars on the histogram increase – by one unit per hour.

Arrow number 2 shows how the histogram turns blue. This is the time when the European trading session begins.

Arrow number 3 shows when the U.S. forex trading session begins.

What are the best hours for forex trading?
It depends on the strategy.

At the beginning of the American session, the forex market is the most volatile. If your strategy is aimed at trading breakouts – then you should probably be active during these trading hours.

If your strategy is more suitable for flat markets – then the Asian session is likely to bring you the best results.

Buy Signals
The Trading Hours Indicator for MT4 does not give signals to buy and sell.

The example below (forex chart GBPUSD, M5) gives an idea of how you can use the indicator for trading ideas.

Before the beginning of the American session, a bullish breakdown of the level (1) is formed on the price chart.

You can assume that buying activity will increase during the American session. Then you are looking for an entry into a bullish position – it may be a test of (2) former resistance.

Set the take-profit around daily high, and the stop-loss should be 1.5-3 times smaller than the take-profit size.

Sell Signal
It is obvious that such market, as EURGBP (price chart – below), will become more active at the beginning of the European session.

Using this fact can help build a breakout trading strategy.

Before the start of the European session, build a trading channel (1-2). And when a breakout bar (bearish in this example) appears on the chart, follow the momentum and control the risks.

Does MT4 have session indicator?
Download the Trading Hours Indicator for MT4 for free. Install it in the platform. It is not difficult.

Conclusion
The Trading Hours Indicator for Metatrader 4 draws attention to the uneven distribution of volatility within the day. The indicator divides the chart into time zones based on the beginning / end of the working day in Europe and America.

However, this is done with some assumption. Because, to be precise, the working day in Frankfurt and London as well as in New York and Chicago starts at different times.

Advantages of the indicator:

Non-repaint.
It helps to build a simple trading strategy
Disadvantages of the indicator:

It is applicable only for intraday trading. It doesn’t work on daily/weekly/monthly charts.
It does not give buy or sell signals.
No alerts
Use Trading Hours Indicator for MT4 to explore intraday volatility changes. This will help you understand the nature of the forex market and give you ideas for a trading strategy that takes volatility into account.

Download Trading Hours Indicator for MT4 for Free Now!