Time Indicator
The Time indicator for MT4 is a very useful tool traders can use to perfectly execute their trades.
Description
There are different time sessions in the forex market, meaning traders can trade at any time of the day. However, there are certain hours of the day that the market experiences a surge in volatility. This often happens when high-impact news is released or during the time of the London and New York session overlap. Therefore, smart traders who trade during this hour also keep watch of time to execute their trade perfectly. Because this surge in volatility requires timing, traders can keep watch over the time using the Time Indicator.
The Foundation
The Time indicator for MT4 is a very useful tool traders can use to perfectly execute their trades. This indicator shows both the local time and the server time. The local time displayed by this indicator is the time zone the trader is trading from. On the other hand, the server time displayed by this indicator is the time zone of the broker’s server.
The diagram below shows how the indicator is displayed on the MT4 chart.
From the EUR/USD H4 chart above, the Time indicator displays two separate times. The first local time displayed in red color is the time zone of the broker’s server. On the other hand, the second time displayed in lime color is the local time of the trader’s time zone.
This indicator can serve as very valuable tools for all traders. News traders particularly can time when to enter the market based on a news release. Traders that take advantages of trading sessions volatility can also use this indicator to time their trades. Moreover, technical traders can use this indicator to know the time to avoid trading, or when to exit the market.
The Time indicator does not give any trade signals, it is only used to know the timing to enter or exit any trade. This indicator does not give information on the momentum, trend, volatility or overbought or oversold conditions of the market. Thus, traders should not use this indicator for buy and sell signals.
To best use this indicator, traders should use it along with the Time Indicator and the Fxr Economic Calendar. These indicators used together will give traders the current trading sessions of the market, the upcoming news release as well as the current time.
Conclusion
The Time indicator for MT4 gives traders a clue to timely executing trading positions. The indicator is valuable to news traders, technical traders as well as traders that trade the session overlaps.
This indicator should not be blindly used to enter trades as it does not give information on the market condition. The indicator will give best results when incorporated with the indicator and the Fxr Economic Calendar.