Free Forex Indicators (MT4), Trend Following Indicators
SSL Indicator for MT4
By Arun Lama
Published On
The SSL Indicator represents a 10-days moving average specially configured for generating short-term trend reversal signals.
Despite being a day trading tool, the SSL indicator is relatively steady in responding to price changes and generating buy/sell signals. Newbie forex day traders seeking consistent results may find this trend indicator extremely useful.
The SSL Indicator uses a single trendline plotted with dots that define the current trend condition.
Besides trend-following trades, the SSL line also assists in spotting solid price breakout levels. However, it may produce false signals during choppy markets. Therefore, using other essential tools like support/resistance and Fibonacci alongside SSL may help you avoid weak trade setups.
The assessment of the current trend condition depends on the price level compared to the SSL curve position.
During a bull run, the price always remains higher than SSL. When the price turns lower than the indicator curve, we consider it a bearish trend reversal condition.
Monitoring how the price reacts at the trendline is a crucial task for SSL users. Since it doesn’t show a price rejection sign, you’ll need to assess whether the market treats the trendline as support or resistance.
For instance, a bearish pin bar appearing right below the indicator level means the price treats the respective zone as resistance, and it is time to look forward to a selling opportunity.
SSL Indicator for MT4: Buy Conditions
The price plots a bullish breakout at the SSL level
A bullish candlestick pattern forms right above the indicator’s curve
SL below the current trendline zone
Take profit after the price drops below the SSL line
SSL Indicator for MT4: Sell Condition
A bearish breakout occurs at the SSL level
The price plots a bearish candle and treats the trend-curve as resistance
SL above the current resistance
Exit short when the price moves above the SSL level
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
