Sessions, Initial Balance & Range Stats

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This indicator has two main components: Time-Specific Sessions and High/Low Statistics. There are also several subcomponents: Day of Week Separators, Specific Session High/Low Extenders, Day Range Statistics, Week Range Statistics, User Input Session Titles, etc.

Each component is explained and demonstrated how it could be utilized as a trading tool.
The basis of this indicator is to analyze session-specific price movements through automatic display and statistics.

Key:

  • Dotted lines = Developing Session
  • Solid Line = Session complete
  • Dashed lines = Past Session

The following shows the example noted above, with the added subcomponents of:
• Shaded areas to define each session
• Extension of the Session’s highs and lows (extension 24/48/72-hour options)
• Future line projection (provides a reminder of when the market opens)
This allows you to see potential levels of resistance and support and market open volatility.

5 Time-Session inputs

Vertical lines and labels separate days of the week.

These sessions could be based on a full market period, such as London Open to Close (0800 UTC to 1630 UTC), the Initial Balance of the day (0000 UTC to 0100 UTC), or a session Initial Balance New York (1430 UTC to 1530 UTC). The settings input text can be updated to reflect this on the chart.

The following shows the example noted above, with the added subcomponents of:

  • Shaded areas to define each session
  • Extension of the Sessions highs and lows (extension 24/48/72-hour options)
  • Future line projection (provides a reminder of when the market opens)
  • This allows you to see potential levels of resistance and support and market open volatility.

The below example shows the input sessions configured for five Session Initial Balances. You can see that the Sessions Initial Balances were in a tight price range. A range breakout occurred with price move of $1400 visualized.

Range Statistics

The secondary function is the Range statistics. Range statistics can be used to track the volatility of each session, day or week and can be selected for up to 31 days. This helps the user to determine overbought or oversold conditions as well as pattern recognition.

Trade Example 1

Settings:  New York Session Open to Session Close.

The colored boxes are manually drawn to emphasize how the New York Lows and Highs can act as a confluence for support and resistance areas.

Trade Example 2a

Settings: London Session Open to Session Close and New York Session Open to Session Close.
This chart shows how the Session Open (in this case, the New York Open) reminder notifies you that there could be volatility when a new session opens.

Trade Example 2b

Notice how price breaks to the upside at the opening of the New York session. In this instance it was a $2,250 or 5.17% increase in the opening hour.

Trade Example 3

Once London closes New York has control of the market; one push-up stops out the shorts that placed stop losses at the London high, then brings price back down to the mean.

By having the reminder lines and shaded sessions, the user is prepared and can anticipate some price reaction, often a reversal if price has been steadily moving in one direction.

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