Semaphore Signal Line (SSL)
Finder’s Keepers
Going back over some top 100 indicators from VP’s list can be like finding money in a jacket pocket from last winter. The initial feeling of “What’s this?”. Then, the surge of jubilation as you triumphantly pull the cash out of it’s resting place and marvel at those beautiful notes of legal tender…for debts public and private. “Hot damn!”
If it’s Good for the Goose
Why can’t we feel the same about an indicator, then? It was kind of a big deal when he made the video over five years ago. We never blogged on it because it wasn’t going to be profiled so naturally, we never tested it or created a technical analysis video. And, we received a really nice email from Carol M, who hails from Bristol, England, asking if we would consider doing a work up on it. How could we say no?
We’re Not Gonna Take It
So that being the long and short of it, we’re gonna do it and there’s nothing and no one who can stop us. By the way, SSL stands for Semaphore Signal Level, which struck us as a bit odd, because we never saw any flags or lights.
What is it?
The SSL indicator is based on the Schaff Trend Cycle (STC) indicator, which combines moving averages, oscillators, and cycles to generate trading signals.
Let’s Get Going
This momentum tool consists of two moving averages which are applied to the high and low of the price and creates a kind of “envelope” that follows price action. When price affects the lines enough so they intersect, that indicates either a long or short signal, depending on which color is on top of the other.
Red Light, Green Light
Let’s take a quick look at what it looks like. For those who have seen this before or are currently using it, please bear with us. For those who are new to the game, take note of this fun, festive, and potentially profitable indicator. By the way, we darkened the candles, so the signal lines shine through. We’ll be using the same gray candles for the video, since we’re highlighting the indicator’s capabilities.
Settings
There are a handful of settings; however, only one affects the indicator. The others are for various alert functions.
Lb: This is the one and only settings which changes the number of periods used for the overall calculations. The default setting is 10.
Pretty Impressive
Below is the standard mark up where we like to show varying market conditions. Just so you’re clear…
Long — When the green signal line crosses and closes above the red signal line.
Short — When the red signal line crosses and closes above the green signal line.
We can see here that it calls changes in the market fairly quickly. Even when it flattens out, the signals keep up and offer decent entries and exits. Could this one end up on our next “Best Exits” video? Let’s find out how it does in a testing environment.
Outcomes & Ramifications
Different Strokes
So, how’d we do? The EUR was definitely on the soft side, softer than some of the more recent indicators we’ve looked at. And that’s fine. Market conditions are fluid, and the indicators will do what they’re programmed to do. SPX500 is just not there at the moment, sorry Indices traders. While BTC beat the normal 12% S&P annual average, it’s also a bit under what we’ve been seeing. However, XAU performed nicely, although the 4-hour numbers couldn’t keep up with their bigger brother on the daily time frame. Bottom line — this indicator has promise and has a place in your trader’s tool box as both an entry and exit tool. Don’t forget, we don’t post “best numbers”, so go fool around with this and see how it does in your system.
Resources
You can download this VP favorite from the on-line library for free. When you’re ready to get it, click HERE.. Also, be sure to subscribe to the Stonehill Forex YouTube channel for the technical analysis videos. Sign up for the Advanced NNFX Course HERE.
Our only goal is to make you a better trader.
*Our published testing results are based on money management strategies employed by the NNFX system and depend on varying external factors, which may be different between individuals and their specific broker conditions. No guarantee, trading recommendations, or other market suggestions are implied. Your results and subsequent trading activities are solely your own responsibility.
BTW — Any information communicated by Stonehill Forex Limited is solely for educational purposes. The information contained within the courses and on the website neither constitutes investment advice nor a general recommendation on investments. It is not intended to be and should not be interpreted as investment advice or a general recommendation on investment. Any person who places trades, orders or makes other types of trades and investments etc. is responsible for their own investment decisions and does so at their own risk. It is recommended that any person taking investment decisions consults with an independent financial advisor. Stonehill Forex Limited training courses and blogs are for educational purposes only, not a financial advisory service, and does not give financial advice or make general recommendations on investment.