SSL Channel Chart Alert Indicator MT4 is a mixture of moving averages. SSL stands for Semaphore Signal Level and provides visual trading signals for buying and selling. The indicator provides bull and bear trends on a cross-sectional basis. For traders who use trend trading, technical strategies can benefit greatly from it.
The indicator is not redrawn, so novice Forex traders can use the indicator to alert them to line crossings. In addition, the buy and sell signals are easy to understand. Trend signals are helpful in understanding the economic conditions of bull and bear markets. Skilled forex traders can mix other oscillators or momentum indicators to verify trading signals and trade using confluence points.
Known as the SSL, the Semaphore Signal Level channel chart alert is an indicator that combines moving averages to provide you with a clear visual signal of price movement dynamics. In short, it’s designed to show you when a price trend is forming.
To do this, it shows you two different-coloured lines that follow the evolution of prices. The indicator is typically on your existing chart, but there are also non-chart versions. It all depends on your preferences: do you prefer your chart to be clean and simple and your indicators to appear separately in another window or do you want everything displaying in one place, which makes cross-referencing easier? Also, as SSLs are designed as an overlay indicator, if you go for a non-chart version, you need to make sure that it performs as intended.
When the two lines intersect, the indicator signals that the price movement is changing direction or is about to. When you add SSL to your trading platform, you have the option of choosing the colour of the lines – be sure to choose colours that don’t conflict with other indicator lines that you use! Having a cluttered chart can be bad enough without having to squint to see colours that are too similar or cancel each other out.
In addition, SSLs include alerts. It depends a bit on how you want to trade, but I recommend that you turn off these alerts, especially when you have a good idea of how the indicator works and what you want to do with it. There’s another reason why turning off alerts is probably better. This is because the indicator can give you false signals when the price swings before a candle closes. You would then risk receiving alerts before you can actually use them, which could confuse or mislead you. Many technical traders who use indicators will advise you to wait for a candle to close before acting on a signal from your indicator (including SSLs).
SSL Channel Chart Alert Indicator for MT4 Trading Signals
Forex technical traders can place a buy order once they see the green line cross the red line to the upside. The most effective stop loss for this type of position is the previous low of the swing, and the profit target is the opposite signal of the trade.
In this technical trading strategy, the crossover that occurs between the green line and the red line indicates a bearish trend. This means that the forex trader can use a stop loss placed at the previous high of its swing to place a sell trade. Profit targets are set at the opposite signal or when the risk-reward ratio is reached.
One can use MT4’s SSL channel chart warning indicator, a tool that can be applied to any intra-day time frame and long-term time frames such as daily, weekly as well as monthly charts. However, signals generated in lower time frames occur more frequently and do not necessarily indicate a trend. Forex traders must employ this trading technique to filter out the trading signals generated by the lower time frame charts.
To get the best results from forex trading, traders can utilize multiple time frames (mtf) to trade in a top-down approach. Forex traders use higher time frame charts to find the most important trends, and lower time frame charts are the most effective entry points. In addition, forex traders need to be alert to support zones, resistance lines and existing trendline channels in close proximity.
A quick and easy SSL strategy
The SSL is supposed to show you when a price trend is changing, but how does it actually work?
As with any indicator that you plan to use, you’re going to want to put this one through a fairly robust testing regime that includes both backtesting and forward testing via a demo account. And what you’ll find out when testing SSL is that here and there it shows some pretty juicy price trends. Remember that when the two lines intersect, SSL tells you that the price movement is changing direction and you can use that as an entry signal if you are sure that this change in direction (or reversal) is likely to turn into a trend.
However, you’ll also notice that the SSL can also lead to dead ends that will cost you money. You will especially notice this when the SSL detects changes in direction that do not turn into actual trend changes.
You may find, though, that these losses are offset by the gains made when SSL sucessfully detects a trend. Nonetheless, you will still want to minimise these losses and the way to do this is to pair SSL with a 2nd indicator that will help you eliminate at least some of those losses without preventing you from making gains.
The best way to do this is to pair SSL with a volume or volatility indicator and some strategies also suggest using a momentum indicator. Examples of indicators that SSL is commonly paired with include the ATR, the RSI (relative strength index), a volume oscillator, and a stochastic indicator. Whichever one you choose, the outcome you are looking for is for this additional indicator to tell you whether a change in price direction signaled by SSL has the strength to turn into a price trend.
So what could a typical SSL trade look like? Well, you will be on the lookout for the convergence and intersection of the two SSL lines, which will give you the initial signal that the price movement is changing direction and a trend may emerge. At this crossover point, you’ll want to check what your confirmation indicator is telling you – for example, if there’s insufficient market volume at this point, you should hold back and avoid entering a trade. If, on the contrary, the volume is there to indicate that there would be a force behind the movement, it is an entry signal. You can hold back until an additional candlestick is completed before entering a trade, as this will protect you even more against hesitations or price pullbacks. By pairing SSL with a good second indicator to filter out price movements that lack strength, you can sharply reduce the losses it would otherwise generate.
SSLs and exit signals
One cool feature with SSLs is that they provide both entry and exit signals. As mentioned earlier, you can enter a trade when the SSL lines cross (assuming your other indicators confirm the trade signal) and this will hopefully allow you to follow a nice price trend. Just like the entry signal, the SSL lines will converge and cross again. As you’ve probably guessed, this indicates that the price movement is about to change direction – if you’re in a trade, this would be an exit signal.
So, if you end up using SSLs, you should use them both to enter and exit your trades. But that’s not necessarily a bad thing. As you will see if you test it, the SSL indicator has the potential to provide you with some nice trends and, assuming you stick to the system that you’ve designed, you should be able to generate gains that outweigh the losses that it causes.
SSL Channel Chart Alert Indicator MT4 is a non-drawable MetaTrader indicator based on moving averages. The indicator sends alert signals based on changes in bull and bear trends. In turn, forex traders can easily trade sell and buy signals and can use them in automated trading forex strategies.