European and American Trading Sessions (Blue)

15. Okt.

The European and American trading sessions, in particular, are known for their volatility and volume, making them key periods for traders to watch.

This Pine Script indicator, "European and American Trading Sessions," helps traders visually distinguish these sessions directly on their charts by shading the background during active hours. We use this indicator in combination with the one that highlights the nighttime phases in white.

Here's a breakdown of how the indicator works:

Key Features of the Script:
Timezone Configuration:
The script allows users to select a timezone from a predefined list that includes UTC, London, Rome, New York, and Tokyo. This flexibility ensures that the session times are accurately displayed regardless of the server or local time of the user.

European Session Parameters:
Users can set the start and end times for the European session. By default, the session runs from 08:00 to 12:00, but the input options make it customizable down to the minute. The European session is highlighted with a light blue background (36% opacity) to avoid overwhelming the chart while still providing a clear visual cue.

American Session Parameters:
Similar to the European session, the American session can be customized. The default times are set from 12:01 to 20:59. This session is highlighted in a slightly darker blue (80% opacity), providing a distinct visual difference from the European session.

Session Timing Calculation:
The script calculates the start and end times for each session based on the selected timezone. It uses the timestamp() function to account for year, month, day, hour, and minute, ensuring that session timings are accurately applied to each day’s trading activity.

Background Highlighting:
Once the session times are defined, the script checks if the current chart time (time) falls within the European or American trading session. If the condition is true, the corresponding background color is applied, visually highlighting the active session directly on the chart. This feature makes it easy to identify when the European or American markets are in play.

Benefits for Traders:
Clear Session Visibility: The color-coded background makes it effortless for traders to identify when key trading sessions are active without needing to constantly check the clock.

Customizable to Your Needs:
With full control over the start and end times for both sessions, traders can adapt the indicator to fit their specific trading hours or preferences.

Timezone Flexibility:
No matter where you're trading from, the ability to set the timezone ensures that the sessions are displayed correctly according to your local time.

Explanation of the Code:

Timezone Selection:
Allows the user to select a timezone from predefined options such as Europe/Rome, America/New_York, etc. This timezone will be used to calculate session start and end times.

Session Timing Inputs:
The script takes user inputs for the start and end times of the European and American trading sessions. These inputs include the hour and minute for both sessions.

Colors:
The color of the European session is set to a blue shade with 36% opacity.
The American session is also colored blue but with a higher opacity of 80%.

Timestamp Calculation:
The timestamp() function converts the input hours and minutes into a time value, accounting for the selected timezone.

Session Conditions:
The script checks if the current time (time) falls within the European or American session. If true, it applies the respective background color for that session. This approach creates clear visual highlights on the chart, marking the active hours of the European and American trading sessions based on user inputs.