The SSL Channel Chart Alert Indicator uses moving averages to identify the trend’s direction. In this guide, we’ll talk about what the indicator is and how you can trade it.
What is the SSL Channel Chart Alert Indicator?
The SSL Channel Chart Alert Indicator applies moving averages on the chart. Generally, you have one shorter and longer moving average and look for crossovers. However, in the SSL Channel, green and red MAs and their crossovers give trading signals.
The green MA signifies bullish momentum, while the red illustrates bearish momentum.
SSL Channel Chart Alert Indicator Strategy
Trading with the indicator is simple. All you have to do is look for the crossovers. When the green MA crosses above the red one, you can take a long position. On the other hand, if the red MA crosses above the green one, you can look for a short entry.
It’s important to note that during periods of consolidation, green and red MA move significantly faster, so it’s better to avoid taking trades at this phase.
The good thing about the indicator is it doesn’t repaint. For instance, it doesn’t change colors; instead, the two MAs act as shorter and longer MAs. The green MA can be considered a shorter MA, while the red MA can be longer.
Like the traditional MA crossover strategy, adding other indicators like the RSI or MACD and looking for divergences along with crossovers is better. These divergences help in navigating a potential reversal.
Another good thing about the SSL Channel Chart Alert Indicator is that you can trade it anytime. If you are a short-term trader or a scalper, you can look for the overall trend on a longer timeframe and then apply a 5 minute or 15 minute timeframe. The longer timeframe helps to reduce the market noise of the shorter timeframe.
- The green moving average should cross above the red one.
- Wait for the price to continue going upwards and then enter the trade.
- You could place a stop-loss at the recent low.
- You could set take-profit at a recent high or exit the trade when the red MA goes above the green one.
- The red moving average should cross above the green one.
- Wait for the price to continue going downwards and then enter the trade.
- You could place a stop-loss at the recent high.
- You could set take-profit at a recent high or exit the trade when the green MA goes above the red one.
SSL Channel Chart Alert Indicator Pros & Cons
Here are the pros and cons of trading with the indicator.
- The indicator is easy to understand.
- You can apply it in multiple strategies.
- It works on all timeframes.
- For trend reversals, you may need to combine the indicator with other forms of technical analysis.
The SSL Channel Chart Alert is a simple MT4 indicator that plots two MAs on the chart. When these MAs cross above/below each other, you can get a trading signal.
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