SSL channel indicator guideline
SSL channel indicator MT4 consists of a mixture of moving averages. Forex 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.
SSL channel indicator guide
What is SSL channel indicator ?
The SSL Channel indicator is also known as the “Semaphore Signal Level channel indicator “ is a technical indicator 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, in other words, it is designed to show the users when a trend is forming and to alert them so that they can act immediately.
How to use the SSL Channel indicator ?
The use of the 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.
- During a downtrend, if the 2 MA crosses, the indicator sends in an alert suggesting a price reversal, in other words, a potential uptrend.
–> Trader should enter the market.
- During an uptrend, if the 2 MA crosses, the indicator sends in an alert suggesting a price reversal, in other words, a potential downtrend.
–> Traders should exit the market to avoid any catastrophic losses.
How to calculate this indicator ?
The tool starts by :
- Calculating a 10-period moving average on the latest 10 highs as follows:
And Then by :
- Calculating a 10-period moving average on the latest 10 lows.
Tips Before using the indicator
The SSL Channel indicator wasn’t programmed to detect market manipulations, so users must be really careful when using this indicator. However, prices 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 a momentum indicator. The SSL gets commonly paired with the RSI indicator (relative strength index). 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 suggesting a reversal pattern. Therefore this MetaTrader 4 indicator helps CFD traders to predict where the 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 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.
The SSL indicator is a flexible tool that works for all trading securities. Professional traders use it generally to make decisions on either to leave the market or stay. The cross of the 2 moving averages is so accurate, that it gives traders the ideal moment to take action.