SSL Channel Indicator Guide
SSL channel indicator MT4 consists of a mixture of two moving averages on the MetaTrader chart. Traders use it since it provides them with visual buy and sell trading signals. Moreover, the SSL channel indicator MT5 helps to identify bullish and bearish market trends. Besides, this indicator is a non-repainting tool. Therefore, traders can use it to get alerts once there is a crossover in the indicator lines. In this course, we will explain the SSL channel indicator for Tradingview, how to use it, how to calculate it, and some tips to better trade this indicator.
Semaphore Signal Level Channel FAQ
What is SSL channel indicator ?
The SSL Channel chart indicator is also known as the “Semaphore Signal Level channel indicator”. This technical indicator is available for MetaTrader 4 and MetaTrader 5 platforms. The basic function of this indicator is that it displays 2 moving averages of a period with a different customizable color for each period. However, the SSL channel moving averages are built based on the highest price for one line and the lowest price for the other line. It provides a clear moving observation of prices of the period. Consequently, it is designed to show the users when a trend is forming. And to alert them so that they can act immediately.
Indicator Formula
The forex tool starts by :
- Calculating a 10-period moving average on the latest 10 highs as illustrated below.
And Then by :
- Calculating a 10-period moving average on the latest 10 lows as depicted below.
How does it work ?
Now that we have already discovered the computation of the SSL forex channel. It is time to discover how it works in the FX market. The Semaphore Signal Level works as an SSL channel indicator that combines two moving averages in order to deliver traders with straightforward and dynamic price moves on the chart. However, traders may adjust the moving average period and the look-back period through settings to their trading system.
How do you trade with SSL channel ?
Trading the MT4 SSL Channel indicator is very simple. In fact, the indicator is based on the moving averages (MA) of the security, which means that any intersection of both lines will suggest a reversal signal. In other words, the end of the current trend and the start of a new one. This means on the other hand that the price movement is changing direction or is about to do so.
Considering the following Swiss Franc, and Japanese Yen daily chart. Traders may follow these indications to trade with the SSL channel:
- After an extended downtrend, the lime line of the indicator will cross above its red line upwards. Here the SSL channel of the indicator suggests a possible bullish reversal alert. Hence, a potential uptrend. Traders may initiate long trades in this case.
- Following an ample uptrend, the lime line of the indicator will cross below its red line downwards. Here the SSL channel of the indicator suggests a possible bearish reversal alert. Therefore, a potential downtrend. Traders may sell the forex pair here.
Which indicator is best with SSL ?
The SSL Channel indicator wasn’t programmed to detect market manipulations, so users must be really careful when using this indicator. However, price manipulation could give a false signal which could mislead traders, into a dead end or into a catastrophic loss. Professionals advise using the SSL indicator alongside with another technical indicator, like a volume, volatility, or momentum technical tool. The SSL gets commonly paired with the RSI tool. If both indicators confirm the potential trend signal you should go for it.
Note that if you use the SSL indicator to enter a market, you must also use it to exit the market.
Download SSL Channel indicator for MT4
SSL channel indicator for MT4 is a free download indicator that consists of two MA lines as shown in the image below. It alerts users when the two moving averages cross. As this suggests a possible reversal pattern. Therefore this MetaTrader 4 indicator helps Forex and CFD traders to predict where the FX market will go.
As observed, the 2 MA crossed at “17 Jun 11:45”, the Mt4 indicator sent an alert informing that a potential downtrend is near.
Download SSL Channel indicator for MT5
SSL channel chart indicator for MT5 is simply a two 10-period moving average. The two MA lines display in the main price chart, one at the high price and the other at the low price. So it forms an envelope that pursues the price. This MT5 indicator alerts the user that a potential downtrend will occur as shown in the MetaTrader 5 chart. This means that the investor is advised to exit the market immediately.
The 2 MA crossed at mid Jun, indicating a potential deep downtrend.
Download SSL Channel indicator for Tradingview
SSL channel indicator tradingview is a technical indicator available in the Tradingview platform. It is a very helpful tool for traders who looking for when to enter and exit the trade. As this Tradingview indicator uses two moving average lines, when they cross over each other they indicate that there is a potential change in the current trend.
Conclusion
The Semaphore Signal Level is a flexible technical tool. Also, it works for all trading securities like FX pairs. Professional traders use it generally to make decisions on either leaving the market or staying. To explain, the cross of the 2 moving averages is so accurate. So, the MT5 SSL channel chart indicator can give forex traders the ideal moment to make trading decisions.
