The i-Sessions indicator is a session separator. On your chart, it distinguishes between Asian, European, and American sessions. You can take advantage of the most volatile sessions or hours. Each trading session can be colored coded. You are now aware of the current trading session.
The indicator is useful for determining price behavior and price ranges during a specific session. The characteristics of different market sessions vary. It is critical for traders to understand which market session they are trading in in order to apply the appropriate strategy for that market environment, and this is where the i-Sessions indicator can help.
What is the i-Sessions Indicator?
The i-Sessions indicator is a customized technical indicator that indicates trading hours. It draws boxes as backgrounds on a price chart that spans a trading session. It also includes the session’s highest high and lowest low for each box.
This indicator uses the beginning and end times that the user specifies in its settings. It bases its time on the broker’s server time. It then draws a box that spans the start and end times. It also bases the height of the box on the highest high and lowest low of the session.
i-Sessions Strategy
Traders can use the i-Sessions Strategy to identify up to eight different market sessions. It lets traders change the start and end times of each session, as well as the color of the box that identifies each session. The indicator’s preset market session start and end times are not in sync with the actual market session hours. As a result, traders would still need to match market hours to actual market sessions. The boxes’ colors are also set to grey. Traders could change it to make differentiation easier.
Buy Signal
The following could be your checklist for a buy trade:
- When the previous trading session closes and the session you prefer trading in begins.
- When price breaks out of the range of the previous trading session on the upside.
Once these two events occur:
- You could open a buy position after the bullish candle closes and you get your signal confirmation.
- You could set your stop loss just below the nearest swing low.
- You could set your take profit at the nearest resistance zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Sell Signal
The following could be your checklist for a sell trade:
- When the previous trading session closes and the session you prefer trading in begins.
- When price breaks out of the range of the previous trading session on the downside.
Once these two events occur:
- You could open a sell position after the bearish candle closes and you get your signal confirmation.
- You could set your stop loss just above the nearest swing high.
- You could set your take profit at the nearest support zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
i-Sessions Pros & Cons
Pros
- The i-Sessions indicator is useful for determining price behavior and price ranges during a specific session.
- It tells the traders what the highest high and lowest low within each trading session is.
Cons
- Using the i-Sessions indicator involves market timing due to volatility.
- This indicator is just a visual modification, not a technical analysis indication, hence additional knowledge of technical analysis is required to trade.
Conclusion
The i-Sessions indicator can be useful in strategies requiring market timing due to volatility, such as the London open and breakout strategies. However, it is merely a cosmetic change rather than a technical analysis indicator.
Day traders who prefer to be aware of which markets are open at the time they trade can also benefit from this type of indicator. Although the indicator has advantages, you should use it with caution in live trading. You could always test the strategy on a demo account or with historical data before implementing it in live trading.
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