There are various time periods in the market for forex trading, which means that traders are able to trade at any time of the day. However, there are specific times of the day when the market is prone to spikes in volatility. This is usually the case when high impact news comes out, or when events overlap in the London as well as New York hours. Therefore, smart traders trade during this time period to ensure that their trades are executed correctly. Because this spike in volatility takes time, traders are able to track time by using timing indicators.
MT4’s Time Indicator is a very useful tool that traders can use to execute their trades with precision. The indicator displays both the local time and the server time. The local time displayed in the indicator represents the local time zone in which the trader is located. On the contrary, the server time shown in the indicator represents the local time where the broker’s server is located.
The chart below shows how the indicator is displayed on MT4 charts.
The time indicator shows two different times. The first one shows the local time in red which is the time zone where the broker’s server is located. In contrast, the second time is shown in lime and corresponds to the local time in the trader’s time zone.
This indicator is an important tool for all types of traders. In particular, news traders can use announcements in the news to determine when they are ready to trade. Investors who take advantage of the volatility of the trading session can use this indicator to determine when they are ready to trade. In addition, traders doing technicals are able to use this indicator to determine when the best time to stop trading, or to leave the market is.
The timing indicator does not provide any trading signals, it is only used to determine the exact time to enter and close a trade. The indicator does not provide details about the pace or trend in the market, volatility, overbought or oversold conditions, etc. Therefore, traders should not use this indicator to determine buy or sell signals.
For the best results with this indicator, investors must use it together with the Time Indicator and Fxr Economic Calendar. When used together, these two indicators will inform the trader about the most recent market trading session, upcoming news releases, and the current time.
MT4’s Time indicator provides traders with instructions for timely execution of their trading positions. The indicator is beneficial for technical and news traders as well as traders with overlapping trading sessions.
The indicator should not be used blindly for trading, as it does not provide information about market conditions. The indicator is most effective in providing results when combined with indicators and Fxr economic calendar.