ka66: FX Sessions High/Low

4 thg 6, 2024

This indicator is specific to the 24-hour Forex Market. It provides 2 features:

1. Demarcating forex sessions with open and close lines. Note that looking at various sources online, we use the convention that the Asia session starts with the Tokyo market open, rather than the earlier Sydney session. Presumably this is better since we then have more liquidity in the market. Note that we have three sessions: Asia, London, New York.
   
2. At the end of each session, we begin plotting that (closed) session's high and low, which acts as a natural support and resistance for the Forex market. This is the key feature it provides. The first feature is mainly there for a visual guide, which can be turned off via the UI settings, but it certainly helps verifying the logic!
   

For more background, we are taking the idea of Previous Day High/Low (PDH/PDL), but adjusting it to a multi-session market like Forex. In essence, this is is a "Previous Session High/Low" indicator.

PDH/PDL works fine when you have a market with Regular Trading Hours, ignoring Extended Hours. However, in the Forex market, each session can have differing sentiments, e.g. we often see say London bringing prices up, and New York bringing them back down.

The break of session high/lows (or bouncing off them) can reflect where the potential direction price is going to take.

I also categorised this as a Sentiment indicator, because support and resistance areas where prices react do provide the sentiment of the market. They aren't just lines, they are prices of interest to major players.

3 thg 11

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Changelog

• Convert to Pine v6
  
• Use an even shorter short-title to keep the indicator name succinct on the chart. Unlike those many, many indicators who shout out he author names in bold RIGHT ON THE CHART. Come on.
  
• Cleaner labeling, fixed logic, where before open and close labels would overlap.
  
• I think, gentler default colours.