Market Sessions Indicator is a powerful tool for both MT4 and MT5 that will help you visualize trading periods directly on your charts, making it easier to apply session-specific strategies. This article will break down what the Market Sessions Indicator does, how to set it up, and the breakout strategy you can apply using its features.
Indicator Description
The Market Sessions Indicator is a technical tool that plots the daily Forex trading sessions as distinct sections on your price chart. This visual separation allows you to identify the trend and price action within each session independently.
This tool is particularly useful for those traders who want to apply different strategies to each session or who prefer to trade only during specific market hours.
Key features of the indicator include:
- Session Visualization: It displays market sessions using colored vertical dotted lines. The colors are typically customizable but the default ones are:
- MT4 Version: Tokyo (Sky Blue), Sydney (Plum), London (Magenta), and New York (Gold).
- MT5 Version: Tokyo (Orange Red), Sydney (Orange), London (Sea Green), and New York (Sky Blue).
- Key Price Levels: The indicator automatically plots crucial price levels on the chart. It displays the high and low of the previous trading session and also shows the opening price of the current market session.
- Future Sessions: It has the capability to show upcoming future trading sessions, often marked in Gray.
- Timeframe Suitability: The indicator can be applied to all low chart timeframes, such as M15, M5 and M1.
Market Sessions Indicator Installation
1. Unzip the file you’ve downloaded.
2. Find the file that is called “Market-Sessions.ex4″/”market-sessions.ex5″ and copy it.
3. Open your MT4/MT5.
4. Go to “File – Open Data Folder – MQL4/MQL5”.
5. Paste the file into the “Indicators” folder in MQL4/MQL5.
6. Restart your MT4/MT5.
Basic Trading Signals (For Breakout Strategy)
Many technical trading strategies are based on the high and low prices of a previous session. The Market Sessions Indicator is perfectly suited for this approach by clearly showing these levels.
Buying Scenario (Bullish Breakout)
- Signal: A bullish signal occurs when the price breaks out above the high of the previous trading session. This is often interpreted as a continuation of a bullish trend.
- Entry: You can consider entering a BUY position once the breakout is confirmed.
- Risk Management: A stop-loss order can be placed below the low of the previous session to manage potential losses. Take-profit targets should be set with a good risk-to-reward ratio in mind.
Selling Scenario (Bearish Breakout)
- Signal: A bearish signal may occur when the price breaks below the low of the previous session. This can indicate that a bearish trend is likely to continue.
- Entry: In this case, you can open a SELL trade with a stop-loss placed above the high of the previous session.
- Risk Management: As with a buy trade, profits should be booked at a target that provides a favorable risk-to-reward ratio.
My Conclusion on the Market Sessions Indicator
The Market Sessions Indicator for MT4/MT5 is an extremely helpful tool for those of you who want to structure your trading around the daily market sessions. By clearly marking each session and plotting the previous session’s high and low, it provides a solid foundation for building breakout strategies and understanding market behavior at different times of the day. As a free and easy-to-install tool, it’s a valuable addition to any trader’s toolkit.
P.S. Have problems with installation? Email me at olivermurphy@altraforex.com or support@altraforex.com
I would love to help!
P.P.S. Check out software by Altra Forex Group here
