Trading Sessions with Highs and Lows is designed to visually highlight specific trading sessions on the chart, providing traders with key insights into market behavior during these time periods. Here’s a detailed explanation of how the indicator works:
Key Features
1. Session Boxes: • The indicator plots colored boxes on the chart to represent the price range of defined trading sessions. • Each box spans the session’s start and end times and encapsulates the high and low prices during that period. • Two trading sessions are defined by default: • USA Trading Session: 9:30 AM - 4:00 PM (New York Time). • UK Trading Session: 8:00 AM - 4:30 PM (London Time). 2. Session Labels: • The name of the session (e.g., “USA” or “UK”) is displayed above the session box for clear identification.
3. High and Low Markers: • Markers are added to the chart at the session’s high and low points: • High Marker: A green label indicating the session high. • Low Marker: A red label indicating the session low.
4. Dynamic Reset: • After the session ends, the session high and low values are reset to na to prepare for the next trading day. 5. Customizable Background Colors: • Each session’s box has a distinct, semi-transparent background color for better visual separation.
How It Works
1. Core Functionality: • A function, plot_box, takes the session name, start time, end time, and background color as input. • It calculates whether the current time is within the session. • During the session: • It tracks the session’s highest and lowest prices. • It identifies the bars where the high and low occurred. • At the session’s end: • It plots a box on the chart covering the session’s time and price range. • Labels are created for the session name and its high/low points. 2. Session Timing: • Timestamps for the USA and UK trading sessions are calculated using the timestamp function with respective time zones. 3. Visual Elements: • The box.new function draws the session boxes on the chart. • The label.new function creates session name and high/low labels.
Usage
• Overlay Mode: The indicator is applied directly on the price chart (overlay=true), making it easy to visualize session-specific price behavior. • Trading Strategy: • Identify session-specific support and resistance levels. • Observe price action trends during key trading periods. • Align trading decisions with session dynamics.
Customization
While the indicator is preset for the USA and UK trading sessions, it can be easily modified: 1. Add/Remove Sessions: Define additional sessions by providing their start and end times. 2. Change Colors: Update the background_color in the plot_box calls to use different colors for sessions. 3. Adjust Time Zones: Replace the current time zones with others relevant to your trading style.
Visualization Example
• USA Session: • Time: 9:30 AM - 4:00 PM (New York Time). • Box Color: Semi-transparent orange. • UK Session: • Time: 8:00 AM - 4:30 PM (London Time). • Box Color: Semi-transparent green.
Why Use This Indicator?
1. Market Awareness: Easily spot price behavior during high-liquidity trading periods. 2. Trend Analysis: Analyze how sessions overlap or affect each other. 3. Session Boundaries: Use session high/low levels as dynamic support and resistance zones.
This indicator is an essential tool for intraday and swing traders who want to align their strategies with key market timings.