Xmaster Formula Indicator: A Step-by-Step Guide for Forex Traders

2025.09.25 2025.09.25
A Guide to Xmaster Formula Indicator in Forex

Oleg Tkachenkohttps://www.litefinance.org/blog/authors/oleg-tkachenko/

The Xmaster Formula indicator is a trend-following oscillator that displays signals in the form of arrows on the chart, helping Forex traders navigate the dynamic Forex market. It combines moving averages with classic indicators such as MACD, RSI, Parabolic SAR, and the Stochastic Oscillator. In essence, it acts as an aggregator: when these tools align and confirm a market trend, the indicator plots an arrow. Its signals are clear, non-repainting, and easy to interpret, making it a practical choice both as a standalone guide and as a confirmation tool within broader trend-trading strategies.

This article provides practical examples of using the Xmaster Formula together with other indicators. It also includes a link to download the indicator installation file for the MT4 platform.

Major Takeaways

• The Xmaster Formula indicator is an arrow-based trend oscillator displayed below the main price chart. It highlights potential entry and exit points with arrows, while the color of its line shifts to reflect bullish or bearish market movement.
• The indicator signals are generated by basic tools, such as moving averages, MACD, and other technical indicators.
• The indicator is suitable for intraday charts with M30–H4 time frames and can be applied to different trading styles, including swing trading and news-based strategies across the Forex trading landscape.
• The oscillator is typically used as a supplementary tool alongside trend indicators, volume, and market analysis, empowering traders to make more informed decisions.
• The calculation formula of the indicator is not publicly disclosed. Free versions are available for both MT4 and MT5 platforms.

What Is the Xmaster Formula Indicator?

Introduced in the early 2010s, the Xmaster Formula is a proprietary custom indicator developed by TradingFinder. Designed as a trend oscillator, it assists traders with identifying trend reversals. What makes it especially convenient is its clear visualization, which combines arrows with color-coded signals that make price direction easy to read and interpret.

The indicator appears below the price chart as a line that changes between green and red. In its default configuration, green signals a bullish trend and red indicates a bearish trend. Arrows point to potential entry and exit points. In some versions, signals may appear as colored dots or bars, but the core principle stays the same.

The Xhmaster Formula Forex indicator is built on a comprehensive trend-analysis system. While its exact calculation formula is not publicly revealed, it is known to rely on established tools such as MACD, RSI, Parabolic SAR, Stochastic Oscillator,  and moving averages.

Key features of the Xmaster Formula indicator:

How the Xmaster Formula Indicator Works

The Xmaster Formula Forex indicator changes its color when the trend reverses and shows an upward or downward arrow. For example, if the color of the line changes from red to green and an upward arrow appears, this is a signal of a bullish trend.

Some sources mistakenly claim that a valid signal appears when two arrows point in the same direction consecutively. In fact, the indicator does not work this way. By design, arrows always alternate, so two identical arrows in a row cannot occur.

The indicator has almost no adjustable settings. The few options it offers are only auxiliary:

You can set up sound and email alerts when signals appear, customize the colors of arrows and lines, and display horizontal levels with fixed values. However, the core parameters are hard-coded and cannot be adjusted.

Xmaster Formula indicator operating principle:

• When the line turns green and is confirmed by rising candles, it generates bullish signals, often with a green arrow indicating the entry point. When the line turns red and is confirmed by falling candles, it points to a downward move. In some versions, the indicator line may also be displayed with a red dotted line.
• A change in the line’s color usually indicates a potential trend reversal.

TradingView offers a modified version of the Xmaster Formula with values ranging from 0 to 100, similar to classic oscillators. This version makes signal interpretation clearer and adds an extra layer of filtering, which improves overall accuracy.

One of the key differences in the TradingView version is that arrows do not appear with every color change. In the basic MT4 setup, an arrow is plotted each time the line switches color. Here, however, an additional filter is applied, so arrows appear less frequently but carry more weight. A third color, yellow, has also been added to signal periods of uncertainty. Any arrow that forms within this yellow zone should be ignored.

This version offers extended indicator settings:

In the settings, you can define the calculation method and the parameters of the moving averages (short, medium, and long) as well as those of the basic indicators.

• In the standard method, the indicator calculates the difference between the short-length EMA (10) and the long-length EMA (38) and normalizes it on a 0–100 scale. A signal is then generated based on the indicator’s value on this scale and its direction of movement.

A buy signal appears when the indicator shows an upward arrow above the 55 level with a green line. A sell signal occurs when the arrow is below 45 and the line is red.

• In the advanced method, signals are generated by MACD, RSI, Parabolic SAR, and Stochastic indicators. When all indicators show an upward/downward trend, an arrow appears.

You can set up two indicators, configure their calculation methods in the settings, and use matching arrows on both charts as signals.

The TradingView version of the Xmaster Formula indicator is open-source, but it is written in Pine Script, which is specific to this platform. If you have programming skills, you can rewrite the code for MT4, or order a conversion service on the MQL5 website. It is also possible to attempt the rewrite with AI tools, but this can be tricky, since errors are common and often prevent the code from compiling, and fixing them can take considerable time. For most traders, the simplest solution is to use the Xmaster Formula right on TradingView charts.

Key Features of the Xmaster Formula Indicator

There are no perfect indicators. However, if you understand how buy and sell signals are generated, even their limitations can work to your advantage. And since the code is open source, you can adapt it to your needs. If coding is not your thing, just use the original Xmaster Formula or the TradingView version.

The indicator has no adjustable settings, which makes testing easier. Still, it should always be tried on historical data before being used on a live account. The key is to find the right way to combine the Xmaster Formula with other indicators and to determine on which financial instruments and under what market conditions its trading signals work best.

Pros and Cons of the Xmaster Formula Indicator

Advantages of the Xmaster Formula indicator:

• It is beginner-friendly thanks to signal visualization. A trader instantly spots a signal when the indicator line changes color and arrows appear.
• The indicator does not repaint. Once an arrow appears, it stays on the chart even after the candle closes. Therefore, the indicator can be added to trading advisors, as the absence of repainting helps reduce false signals.
• Multi-indicator approach. The Xmaster Formula combines signals from multiple indicators. Moving averages show the trend direction, while MACD (Moving Average Convergence Divergence), the RSI (Relative Strength Index), and the Stochastic Oscillator provide confirmation by generating reliable signals.

Disadvantages of the Xmaster Formula indicator:

• Closed signal generation algorithm. No possibility to adjust the code to your strategy.
• False signals during flat markets. The indicator is designed for trading highly volatile assets with frequent changes in price movement.
• Virtually no settings. The indicator cannot be adjusted to different volatility levels or changing market conditions.

The Xmaster Formula indicator is available in different versions, which is both an advantage and a drawback. Over the past 15 years, it has been modified many times. New basic indicators, like the Bollinger Bands, were added, and the signal algorithm was adjusted. None of the versions can be called the best or the worst. The best way is to try the indicator in combination with exponential moving averages and other reliable tools, backtest it on historical data, and base trading decisions on sound risk management practices for financial markets.

How to Install the Xmaster Formula Indicator on MetaTrader 4

The Xmaster Formula indicator is not built into MetaTrader by default. There are two ways to install it:

Option 1. This method only works if you download the indicator from the MetaQuotes website, the developer of MT4/MT5:

• Sign up on the MQL5.com website. You can find the indicator through the search bar or use this link (note that the link may expire at any time).
• You can download the indicator for free. During installation, you will be asked whether MT4 is already installed. If not, install the trading platform first.

If MT4 is already installed, the platform will prompt you to log in to your MQL5 account. After logging in, restart the Xmaster Formula installation from the website, and the indicator will appear in the Navigator window.

Option 2. The classic way to install any indicator:

• Download the Xmaster Formula indicator file to your computer. It usually comes as an archive containing one or more files. Another version of the indicator, different from the one in Option 1, can be downloaded for free here.
• Open the installation folder in MT4 by navigating to File > Open Data Folder.

• In the opened window, go to MQL4 > Indicators. Copy the file from the archive to this folder.
• Restart the platform.

After restarting the platform, the indicator will appear in the Insert > Indicators > Custom menu. If it does not show up, the file may not be compatible with MT4, or the installation steps were not followed correctly. In some cases, the archive includes several files with different extensions, which must be placed into their respective folders.

How to Use the Xmaster Formula Indicator in Forex Trading

The Xmaster Formula oscillator works as a supplementary tool that confirms signals from the main indicator. In essence, it is an aggregated indicator that brings together four classic oscillators. It is best used alongside a trend indicator, such as moving averages, which provide the simplest foundation for a strategy. On its own, however, it should not be considered a complete trading system.

Let’s analyze the EURUSD currency pair on the H1 time frame. The red MA(9) is the fast moving average, and the yellow MA(21) is the slow one. When the fast MA crosses the slow MA and the price moves above or below the crossover point, this signals an uptrend or a downtrend. The arrow of the Xmaster Formula indicator then acts as a confirmation signal.

• 1 – The red moving average crossed below the yellow one, and the Xmaster Formula signal appeared on the next candlestick. Entering a short trade at that point could have yielded at least 25 points, and up to 40 points at most.
• 2 – A similar setup, but for a long position. The moving average crossover came first, and the Xmaster Formula signal confirmed it slightly later. In this case, the potential profit was smaller, in the range of 15–25 points.
• 3 – A delayed sell signal from the Xmaster Formula indicator. Although it appeared later than the moving average crossover, it still indicated the correct direction of the trend.

I would like to reiterate that this is only an example, not a complete trading system. All three signals indicate that it is mainly possible to capture small price trends. False or delayed signals cannot be ruled out. The main question is how to determine the moment to close trades. This is a matter of proper risk management.

Here is one possible approach: On H1–H4 time frames, even small price movements can produce 20–40 points in 4-digit quotes. For a position of 0.01 lots, that equals $2–$4. While this may not seem significant, the volume can be increased by using leverage. To follow the basic rules of risk management, move a stop-loss order to the breakeven level once the price moves 7–10 points, and then protect the position with a 10-point trailing stop.

In the modified TradingView version, the indicator is slightly more complex: green and red arrows appear only when signals from the underlying indicators align. For a long position, the arrow must appear above the 50 level, and for a short position, it must be below this level. Because of this strict filtering, signals are relatively rare. Moreover, traders should factor in the possibility of false signals.

The signal on the chart above is weak because the arrow appeared on the yellow neutral line, and the downward move on the H1 time frame was relatively small.

Adjust the settings to achieve an optimal balance between signal frequency and effectiveness. This can only be done in the strategy tester, and it requires time. In this respect, the basic MT4 version of the indicator is much easier to use.

Conclusion

The Xmaster Formula indicator offers the best results when used as part of a trading system rather than on its own. It is a trend-following indicator that confirms bullish and bearish signals from other tools. Many strategies rely on oscillators such as RSI and MACD, and Xmaster Formula combines these into one aggregated indicator. This makes it convenient to use, since there is no need to install each oscillator separately, although the number of signals is lower.

Download the Xmaster Formula, install it on your platform, and try it out in trading. It may become a valuable addition to your trading toolkit. Wishing you success in your trading journey!