Trade Smarter with the Free SSL Channel Indicator for MT4/MT5 (Video Guide)
The SSL channel indicator for MT4 consists of a mix of two moving averages overlaid on the MetaTrader chart. Traders utilize it to receive visual buy and sell trading signals. Furthermore, the SSL channel indicator for MT5 assists in identifying bullish and bearish market trends. Additionally, this indicator is a non-repainting tool, allowing traders to set alerts for when the indicator lines cross over. In this guide , we will delve into this indicator, covering its usage, calculation, and tips for improved trading with this indicator.
What is SSL channel indicator ?The SSL Channel chart indicator, also known as the “Semaphore Signal Level channel indicator,” is a technical indicator available for the MetaTrader 4 and MetaTrader 5 platforms. The basic function of this indicator is to display two moving averages of a user-defined period, with a different customizable color for each period. However, unlike standard moving averages, the SSL channel moving averages are built based on the highest price (HMA) for one line and the lowest price (LMA) for the other line. This provides a clear visual representation of the range of prices within the chosen period. Consequently, the SSL channel indicator is designed to show users when a trend is forming and to alert them so that they can act accordingly.
How does it work ?Now that we’ve understood the calculation of the SSL forex channel indicator, it’s time to delve into its practical application in the FX market. The Semaphore Signal Level functions as an SSL channel indicator that combines two moving averages to provide traders with a clear picture of price movements on the chart. This dynamic visualization helps traders identify potential trading opportunities. Traders can customize the indicator to their trading style by adjusting the moving average period and the look-back period through the settings. This flexibility allows traders to fine-tune the indicator to their specific needs and risk tolerance.
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 do you trade with it?
Trading this 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 ?
This 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.
The ssl indicator 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.