Xmaster(Xhmaster) Formula Forex Indicator MT4 & MT5 | Boost Your Trading Strategy in 2025

In the game-changing world of forex trading, finding reliable tools to enhance your strategy can be the difference between profit and loss. Imagine having a powerful, all-in-one indicator that combines the strengths of Moving Averages, RSI, MACD, and Bollinger Bands to pinpoint potential buy or sell signals with precision. That’s where the Xmaster Formula indicator comes into play.

In this blog, we’ll explore the Xmaster Formula Forex Indicator, how it works, why it’s a game-changer tool, and at the end, we’ll find out a practical Xmaster formula indicator strategy with real examples. Stay tuned to learn more!

What Is the Xmaster Formula Indicator in Forex?

The Xmaster Formula indicator was created in the early 2010s to identify support and resistance levels, potential price reversals, and entry and exit points. It combines the most popular indicators, such as moving averages, MACD, Bollinger Bands, and other technical indicators. Here are the common use cases of the Xmaster formula indicator in forex:

Confirmation Tool

Using the Xmaster Formula indicator in Forex, you can validate entry and exit points derived from other analytical methods. Alerts from the Xmaster Formula forex indicator can validate chart patterns, breaks in support/resistance, candlestick signals, and more.

Overbought Trading

In forex trading, overbought refers to a market condition where the price of a currency pair has risen significantly and rapidly over a short period to the point where it is considered to be trading at a level higher than its intrinsic value. When this market condition occurs, you may predict a price reversal or a period of consolidation where the price stops rising and potentially declines. Using the Xmaster Formula indicator in forex trading, you can identify the market conditions that have been overbought. When the Xmaster formula forex indicator‘s histogram bars reach extremely high levels, it indicates that the market might be overbought. These extremes are usually defined by specific levels on the indicator, such as 80 or higher, depending on the settings.

Oversold Trading

Opposite to the overbought condition explained above, oversold in forex trading refers to a market condition where the price of an asset, for example, a currency pair, has fallen significantly and rapidly, potentially to a level considered below its intrinsic value. This suggests that the currency pair may be due for a reversal or a bounce back, as the selling pressure might be overextended. Using the Xmaster Formula indicator in forex trading, you can spot these market conditions specifically when the histogram bars reach extremely below a certain threshold (often 20 or lower), suggesting oversold conditions.

Buy and Sell Entries

Xmaster formula indicator in forex is shown with arrows on the chart to determine potential buy or sell signals. These arrows are typically generated based on the combination of moving averages, oscillators, and other market conditions. Technically speaking, when two consecutive arrows of the Xmaster formula move upwards, it suggests that the market is showing sustained upward momentum, making it a good opportunity to consider entering a buy trade. In contrast, when two consecutive arrows of the Xmaster formula move downwards, it can be considered a good opportunity to enter a short position.

How to Use Xmaster Formula Forex Indicator in MT5

To use the Xmaster Formula Forex indicator in MT5, start by downloading the indicator and then follow these steps:

1. Open MetaTrader 5 and click on the “File” menu.
2. Select “Open Data Folder.”
3. Copy the downloaded Xmaster file and paste it into the “Indicators” folder within the Data Folder.
4. Next, go to the Navigator section in MT5, right-click on “Indicators,” and select “Refresh.”

Xmaster Formula MT4 Indicator

The Xmaster Formula Forex Indicator is also compatible with the MT4 application, making it easily accessible for traders using the older version of the platform. To download the Xmaster Formula MT4 indicator, simply follow the steps explained in the previous section for an MT5 version installation.

While the Xmaster Formula Forex Indicator is available on both MT4 and MT5 platforms, the latest version of MetaTrader, MT5, provides more advanced features and enhanced functionalities. This version, which is fully supported by the ITB broker, offers traders a broader range of tools, improved charting capabilities, and a more user-friendly interface, making it the preferred choice for many seasoned traders.

Advantages of Xmaster Formula Indicator in Forex Trading

The key features and benefits of the Xmaster formula indicator in forex are listed as follows:

• You can apply the Xmaster formula forex indicator in all timeframes along with all types of currency pairs, including majors, minors, and exotics.
• You can adjust any changes in Xmaster’s parameters and create your personal setting.
• One of the standout features of the Xmaster formula indicator in forex is its user-friendly interface. This interface allows you to easily
• understand the indicator’s signals, making it accessible to a broad audience.

Disadvantages of Xmaster Formula Indicator in Forex Trading

Despite its key characteristics, the Xmaster Formula indicator in forex also comes with some drawbacks:

• Xmaster Formula can lag, meaning it might provide signals after a significant portion of the trend has already occurred. This could result in missed opportunities or late entries.
• Similar to other forex indicators, it can generate false signals during periods of low volatility or sideways market conditions, leading to potential losses.

Xmaster Formula Indicator Strategy: Enter a Long Position

So far, we’ve discussed the features of the Xmaster formula forex indicator and learned how it works. Now, let’s look at one forex strategy that uses the Xmaster indicator as follows:

• Using the Xmaster formula indicator, the green line indicates an overall upward trend, and the red line indicates an overall downward trend.
• The trend reversal is identified when the green line suddenly changes direction and starts moving upwards.
• The upward movement of the green line and the formation of bullish candles is considered a buy signal.
• It should be noted that the signal identified by Xmaster indicator must be confirmed by other technical tools and indicators, and after confirming the bullish candle, you can enter a buy position.
• You can also use stop-loss and other risk management techniques according to your trading strategy.

Xmaster Formula Indicator Strategy: Enter a Sell Position

On the other hand, with the Xmaster Formula indicator, you can enter a short position by following this strategy:

• A trend reversal is identified when the green line suddenly changes direction and starts moving downward.
• The downward movement of the red line and the formation of bearish candles is considered a sell signal.
• Other technical tools and indicators must confirm the signal issued. After confirming the bearish candle, you can enter a sell position.
• Similar to entering a long position, you can set the stop-loss, take profit orders, and minimize your risks accordingly.

Xmaster Formula Indicator Forex Free Trading Tips

Like any other technical indicator, the Xhmaster Formula indicator (MT4, MT5) provides the most accurate results when combined with other tools and indicators. Here are 4 free tips to make your Xmaster formula trading more precise.

1. Use Moving Averages (MAs): Use a 50-day or 200-day moving average to confirm trend direction before taking trades signaled by Xmaster.
2. Double-Check Everything with RSI: The Relative Strength Index (RSI) can help identify overbought or oversold conditions to validate Xmaster’s signals and avoid false entries.
3. Throw Fundamental Analysis in the Mix: Following economic calendars and other news, monitor key economic events such as interest rate decisions and employment reports to avoid trading during unpredictable market conditions.
4. Be Smart with Timeframes: Use Xmaster on longer timeframes (e.g., H4 or Daily) for stronger signals while combining with shorter timeframes for entry precision.

Xmaster Formula Forex Indicator Performance Metrics

Studying historical charts from an Xhmaster Formula indicator standpoint will help you better grasp what you should and should not expect from it. Some key performance metrics you should consider are as follows.

• Win Rate: The indicator typically performs well in trending markets, offering an estimated 70-80% accuracy when trends are strong. However, its performance drops in ranging markets.
• False Signal Rate: During choppy or sideways markets, the Xmaster Formula may produce false signals, leading to potential losses if used without confirmation tools.
• Backtesting Data: Running the indicator through historical data using trading platforms like MetaTrader 4/5 and Forex Tester helps you understand how profitable it is during different market conditions.
• Best Market Conditions: The indicator tends to excel during strong bullish or bearish trends but may struggle during consolidation phases.

Customization Tips for Xhmaster Formula Indicator

As mentioned above, the Xhmaster formula forex indicator is customizable. While seasoned traders usually know what adjustments they want to add to the indicator’s original settings, if you’re just getting started with it, here are some steps you can take.

For highly volatile markets, you can increase the indicator’s sensitivity to capture quick price movements, but be sure to use it cautiously. On the other hand, lower sensitivity can help you avoid minor fluctuations and focus on major trend moves instead.

Similarly, if you choose shorter timeframes with the indicator, such as M5 and M15, you may have to fine-tune everything to get rid of unnecessary noise. At the same time, by choosing longer timeframes, you can benefit from the indicator’s default settings.

Lastly, it’s important which currency pairs you choose to trade. While pairs like EUR/USD trend more consistently, others like GBP/JPY are more volatile and require tailored adjustments.

Real Examples of Using Xmaster Formula Forex Indicator

Let’s look at a real example below to understand the Xmaster Formula indicator’s utility better.

As explained earlier, you can enter a long position as the Xmaster formula turns green. Using the Xmaster formula forex indicator, when you see two consecutive upward arrows (usually green), it suggests that the market is showing sustained upward momentum, making it a good opportunity to consider entering a buy trade. The entry point can be placed at the opening of the next candle after the green signal.

On the other hand, as illustrated in the above picture, the indicator shows a sell signal when the line turns red, indicating that the market might move downward. Two consecutive downward arrows (red) are also generally a sell signal in the Xmaster Formula indicator.

The Bottom Line

The Xmaster Formula indicator in forex is a versatile tool that combines the strengths of multiple technical indicators to provide reliable buy and sell signals in the forex market. While it offers significant advantages, such as ease of use and broad applicability across different timeframes and currency pairs, it also comes with certain limitations, like potential lag and false signals in low volatility conditions. Understanding the pros and cons of this indicator will help you use the Xmaster Formula more effectively and improve your overall trading strategy and outcomes.

It’s important to note that the Xmaster Indicator is often mistakenly searched as “Xhmaster.” However, the correct name is “Xmaster,” and it should not be confused with this incorrect spelling.

Can I use the Xmaster Formula Indicator on any timeframe?

Yes, the Xmaster Formula Indicator in forex can be applied to all timeframes, making it versatile for different trading styles, whether you’re a day trader, swing trader, or long-term investor.

How do I install the Xmaster Formula Indicator in MetaTrader 5?

To use the Xmaster formula forex indicator, download the indicator file, open MetaTrader 5, navigate to “File” > “Open Data Folder,” and paste the indicator file into the “Indicators” folder. Refresh the indicators list in the Navigator section, and you’re ready to use it.

Can I use the Xmaster formula mt4 indicator?

Yes, the Xmaster Formula indicator is available for both MetaTrader 4 and MetaTrader 5. However, the latest version, offered by ITB Broker, includes more advanced features.