SSL Channel Chart Indicator
Platform: MT5 Type: Channel Last update: November 14, 2024The SSL Channel Chart Indicator for MT5 combines moving averages to generate trading signals. The acronym SSL stands for Semaphore Signal Level, and it offers visual indications for buy/sell signals. It presents signals for both bullish and bearish trends when the lines cross.
After installation and activation your chart should look like this.
In essence, what is the SSL channel?
The SSL channel chart is a technical analysis tool designed to detect changes in market trend. Trading signals provided by this gauge are based on moving average intersections. So it is a perfect choice for forex traders who employ trend trading strategies.
It’s worth to note, that it is a non-repainting indicator, thus users can receive reliable alerts when the signal lines cross over. What’s more, these buy/sell signals are pretty easy to understand and follow by less experienced traders. The goal is to comprehend whether the market conditions are bullish or bearish.
Experienced folks can enhance the accuracy of the provided signals by combining the SSL with other momentum indicators or oscillators, ensuring confirmation and trading with confluence.
Explaining the chart
The core of this tool is about displaying bullish and bearish trends using a pair of orange and green lines. Let’s take a look on conditions that needs to be met before opening a trade.
A buy position is meant be triggered when the green line crosses above the orange line. The previous swing low serves as the ideal stop loss for this kind of position, while the profit target is determined by the opposite trading signal. Of course, you can go with any TP approach, e.g. specific risk to reward ratio.
Conversely, a bearish trend is indicated when the green line crosses below the orange line. In this scenario, traders are supposed to enter a sell trade with a stop loss set at the previous swing high. The profit target is either determined by the opposite signal or when a satisfactionary risk-reward ratio is achieved.
Additional tips
This gauge can be applied to different timeframes: including short-term like 15-min or h1 and also long-term like daily or weekly. But one must note that signals or lower timeframes are usually more frequent and may not always indicate a start of strong trend.
The best way to approach it is using multi timeframe analysis. In other words, forex traders should utilize higher charts to determine overall trend and to filter signals on lower charts. Therefore, lower ones comes handy for good entry points in the direction of leading market forces.
We also advise for extra caution near support and resistance levels where you can expect more volatile price reactions.
Summary
Ultimately this is a good and reliable indicator that utilizes moving average crossovers as a core. Its signals are easy to interpret and at the same time they are pretty universal making this tool a nice fit for various strategies. Feel free to give it a try and combine with other technicals.
Submit your review | |
