Introduction to the SK Days of Week Indicator
There are many assumptions and hypothesis that traders have regarding how price behaves on a particular trading day. For example, some traders believe that Fridays are risky trading days since it is the last day of the week. It might be due to a choppy volatility as traders close their positions for the week. It could also be due to a low trade volume. Another hypothesis is the gaps that develops on Mondays.
Traders can test these hypothesis using the SK Days of Week Indicator since it allows them to easily identify the days of the week on the price chart.
What is the SK Days of Week Indicator?
The SK Days of Week Indicator is a custom indicator which helps traders identify the day of the week on the price chart. It simply labels each period or each candle the day of the week on the start of the new trading day. This allows traders to observe how prices move on any given day.
Below is a chart showing the SK Days of Week Indicator on the 1 hour chart which has period separators for each day. On this chart, traders can observe how price action behaved on an hour to hour basis for each trading day.
On the other hand, the chart below shows the SK Days of Week Indicator on the daily chart. This chart shows us how price moved on a day to day basis as a candlestick formation.
How the SK Days of Week Indicator Works?
The SK Days of Week Indicator has a simple algorithm within its program script which retrieves the time of day information from the broker’s server price feed. It then labels the candle which coincides when the new trading day starts.
How to use the SK Days of Week Indicator for MT4
The SK Days of Week Indicator has several setting options which traders can use to modify the visual presentation of the indicator.
The “BarCount” variable modifies the number of days in which the indicator would label the day of the week on each day.
“TextDistance” adjusts the distance of the trading day label from the candlestick formations.
“Font” allows traders to select which font type would be used to label each trading day.
“FontSize” allows traders to adjust the text size of the trading day label.
The “TextColor_…” options allow users to select the color that each trading day would be labeled with.
Traders can use this indicator to observe how price typically behaves on each trading day. They could have a trading hypothesis as to how price would behave on a particular day, then test and observe if it holds true on the price chart. They could then adjust their trading strategies based on what they have observed.
Conclusion
This indicator does not provide any technical analysis indications like most technical indicators. It does not provide trend or momentum direction and reversals. It does not provide signals when to enter or exit the market, or an indication as to which trade direction to take.
However, it can still be a useful tool as it can help traders observe more clearly how price behaves with each trading day. It can also help traders find any observable correlation between how price action moves and the day of the week.
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