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What Is the Xmaster Formula Indicator
The Xmaster Formula Indicator is one of the most recognized custom trading tools designed for the MetaTrader 4 (MT4) platform. It helps traders identify potential trend reversals and entry points with remarkable accuracy. By combining smoothed moving averages and color-coded signals, this indicator offers clear visual cues for buy and sell opportunities, making it ideal for both beginner traders and experienced traders.
Unlike traditional oscillators or lagging indicators, Xmaster Formula reacts smoothly to market momentum while filtering out short-term noise. It plots color changes (Lime for bullish, Red for bearish) that represent the strength and direction of price movement. When the trend changes color, it often signals a possible entry setup or an early warning of reversal.
In simple terms, the Xmaster Formula acts like a visual trend confirmation system — it shows when a new direction is forming and when the current move is losing momentum. It can be used across all forex pairs and timeframes, making it one of the best custom indicators for MT4 available for traders looking to simplify their chart analysis.
See also: ZCOMFX Daily Trend MT4 Indicator
How It Works – Understanding the Logic Behind Xmaster Formula
The Xmaster Formula uses a combination of smoothed moving averages (SMMA) and mathematical filters to detect momentum changes within price data. Essentially, it compares two smoothed averages of price movement and calculates the difference to define whether the market is currently bullish or bearish.
When the indicator line turns Lime, it means the short-term moving average is crossing above the longer one, confirming bullish strength and signaling a potential buy opportunity. When it turns Red, the shorter average is below the longer average, showing bearish pressure and suggesting a sell opportunity.
This simplicity allows traders to read the chart intuitively without overcomplicating technical analysis.
Key Functional Highlights:
- Trend Direction Recognition: The color changes between Lime and Red immediately reveal whether the market bias is up or down.
- Momentum Confirmation: Xmaster Formula reacts faster than many classic trend indicators but maintains smoothness to reduce false signals.
- Entry and Exit Alerts: Built-in sound and email alerts notify traders whenever a new signal appears — perfect for those who monitor multiple charts.
- Signal Precision: The indicator plots arrows at points where bullish or bearish shifts occur, marking potential entry zones with high clarity.
- No Repainting: Once a candle closes, the color signal remains fixed, ensuring reliability during backtesting and live trading.
This tool can be applied as part of broader trading strategies with MT4 indicators, particularly for trend-following, swing trading, or breakout methods. Many traders use it to confirm signals from other systems such as RSI, MACD, or moving average crossovers.
Xmaster Formula Settings
The indicator comes with several adjustable parameters that let you fine-tune its sensitivity and alert behavior:
| Setting | Description |
| EmailAlert | Enables or disables email notifications when a new signal forms. |
| SoundAlert | Activates a pop-up and sound alert to inform you instantly of new trade opportunities. |
| Gi_84 (Period) | The smoothing period that defines how reactive or smooth the trend line will be. A smaller value increases sensitivity; a larger one filters out more noise. |
| Gi_88 (Signal Distance) | Determines how far the stop-loss or take-profit markers appear relative to the signal. |
| G_ma_method_92 | Defines the moving average type used (SMMA by default). |
| G_applied_price_96 | Sets which price (close, low, high) is used in calculation. Default is PRICE_LOW. |
For most traders, the default settings work very well across major forex pairs like EURUSD, GBPUSD, and USDJPY on timeframes ranging from M15 to H4. However, scalpers might reduce the period slightly for faster reaction, while swing traders can increase it to focus on more stable signals.
Trading With the Xmaster Formula Indicator
When using the Xmaster Formula, the simplest approach is to trade in the direction of the signal color:
- Buy Setup: When the indicator turns Lime and the market confirms higher highs on the price chart, open a long position.
- Sell Setup: When it turns Red, indicating bearish sentiment, consider short entries or exiting long positions.
For additional confirmation, many traders combine Xmaster Formula with support/resistance analysis, candlestick patterns, or another technical method for forex strategies such as the ADX or Bollinger Bands.
Example Strategy:
- Wait for a color change on the Xmaster Formula.
- Confirm that the new candle closes in the same direction as the signal.
- Place your order with a stop-loss beyond the recent swing high or low.
- Use the opposite color change as your exit signal.
This combination of clarity and discipline makes it one of the free forex indicators for beginners that can genuinely improve consistency.
Why Traders Prefer Xmaster Formula
- Accuracy and Smoothness: It filters minor price fluctuations, focusing only on meaningful trend movements.
- Ease of Use: No complex setup or external dependencies — simply attach it to any MT4 chart.
- Visual Clarity: The color-coded design allows traders to read the market state instantly.
- Compatible With Any Pair: Works equally well on forex, metals, and indices.
- Enhances Trading Discipline: Since the signals are consistent, traders learn to act only when valid setups appear.
When used properly, the Xmaster Formula can significantly improve forex trading results with indicators, helping you avoid impulsive trades and align with the dominant market trend.
How to Instal “Xmaster Formula Forex” Indicator for Metatrader 4
- Open your Metatrader 4 platform.
- Download and save the “Xmaster Formula Forex” indicator to your desktop or any other folder located on your local computer.
- Choose “File” then “Open Data Folder” (Ctrl + Shift + D) on your Metatrader 4 platform.
- Explore the following folder: MQL4 > Indicators.
- Copy and paste the “Xmaster Formula Forex” indicator into this folder.
- Restart Metatrader 4.
- “Xmaster Formula Forex” indicators are stored by default in the custom indicator folder.
- To access these indicators, go to Top Menu > Insert > Indicators > Custom.
- In order to add a “Xmaster Formula Forex” indicator to any of your Metatrader 4 charts, you will need to select a forex chart with one mouse click, then go to Top Menu > Insert > Indicators > Custom > click the “Xmaster Formula Forex”.
- Done!
See a complete guide How To Install Metatrader 4 Custom Indicators
Final Thoughts
The Xmaster Formula Indicator for MT4 remains one of the most trusted tools among retail traders who value simplicity, reliability, and visual clarity. It doesn’t require coding skills or complex interpretation — you simply follow color shifts to align your positions with the market trend.
Whether you’re exploring forex education for beginners or refining your professional strategy, Xmaster Formula is a versatile addition to any trader’s toolkit.
You can try this powerful indicator yourself by downloading it below and start integrating it into your daily trading routine.
Free Download Xmaster Formula Forex indicator for Metatrader 4
- xmaster-formula.zip
- Size: 20.1 kb
- Platform: MT4 | Format: .mql4/.ex4 | File: dir9mt4 | Request Remove!
