The Semaphore Signal Level Indicator, aka the SSL Channel, is a simple but effective tool for determining the trend and possible reversals.

SSL Channel Calculation

The SSL indicator is simply a pair of moving averages or equal period. Most likely, you will be familiar with moving averages such as the 20MA. When you see MAs on a chart, they are usually based on the candle Close price. What makes the SSL indicator different, is that one MA is based on the candle High price and the is based on the candle Low price. Plotted on a chart, these lines form a channel which not only highlights price movement, but also the widening and narrowing of the channel illustrate increasing and decreasing volatility.

SSL Channel formed from 2 moving averages
SSL Channel formed from 2 moving averages

The SSL Indicator PIN

To turn this into a trend indicator, all that is needed is to detect the position of the SSL channel in relation to the price.

SSL Channel showing dominant signal
SSL Channel showing dominant signal

If the price is above the SSL channel, the trend is long, and if the price is below the SSL channel the trend is short. When the price is inside the channel, this suggests that price has no clear direction, and could ranging or about to reverse.

SSL PIN Settings

For each timeframe you can select a different mode:

  • Disabled (D) – The timeframe will be ignored.
  • Enabled (B) – Gives a trend signal based on the relevant positions of the SSL channel and price.

Other important setting are:

  • Period – Sets the averaging period of the Moving Average. The SSL channel typically uses a value between 10 and 20.
  • Method – Selects the Moving Average method for the channel. SSL typically uses a Simple Moving Average, but you can also experiment with Exponential, Smoothed and Linear Weighted.

Download “JagzFX SSL Indicator MTF PIN”

JagzFX_PIN_SSL_MTF_v1_02.ex4 – Downloaded 170 times – 39.88 KB

SSL Channel MTF PIN Change Log

//|                                        SSL Channel Indicator PIN |
//|                                           Copyright 2020, JagzFX |
//|                                      |
//| v1.00  Initial version
//| v1.01  Convert to OnTimeer(1)
//| v1.02  Update: Core = jagzfx_CDashEAX_v1_04.mqh
//|   "    Add: SSL MA Mode Parameter