Introduction
The Xmaster Formula indicator was developed by Sayadi Achref and is a trend-based technical indicator that claims to work on many different forex pairs and across multiple different timeframes.
It is available on the Metatrader platform and it essentially alerts you to the start of a new trend, giving you a signal to go long or short in the direction of this trend, but it also indicates when the trend is over, and therefore when you should exit your position as well.
How to Use the Xmaster Formula Indicator
The indicator appears in a separate section below your price chart and is displayed as a histogram or a dotted line (depending on the version) that is either green when the price is in an upward trend, or red when it is in a downward trend.
A buy signal is generated when the histogram/line changes from red to green and a sell signal is generated when it changes from green to red.
It is suggested that you enter a position on the close of the candle after a signal is generated (green to red or red to green), and exit your position as soon as the indicator changes color.
Stop losses can be placed at a recent swing high or low, and can be moved to break-even once a position moves in your favor.
Is The Xmaster Indicator Effective?
Like many trend-based indicators, the Xmaster Formula tends to perform well in strong trending markets because it will get you into a new trend fairly early and will keep you in a position until it’s conclusion, generating many pips in the process.
However it can also give a lot of false breakout signals in a flat sideways market, and you can get stopped out several times before a strong trend emerges.
Plus it can be quite late to signal when a trend is over and you can sometimes give back some of your profits as a result, but you don’t necessarily need to wait for this indicator to tell you when to take profits if you have your own methods or pre-defined profit targets.
Final Thoughts
The Xmaster Formula indicator is not the holy grail indicator that will make you a millionaire, but it is still a very useful indicator that is said to generate winning trades around 70-75% of the time on currency pairs and stock market indices.
So if you use sound money management and position sizing rules, and maybe combine it with one or two other indicators that you like to use, it could potentially be an effective and profitable indicator to use, even for seasoned traders.
Beginner traders who may not have the ability to read price action or identify new trends can also benefit because the Xmaster Formula gives simple trend-based signals that are easy to follow.
This indicator can be used by scalpers on the 1 or 5-minute charts, for example, or it can be applied to the 4-hour, daily or weekly charts, for instance. The formula is the same regardless of the timeframe.
Xmaster Formula Indicator Download Links for MT4 / MT5
If you would like to test this Xmaster Formula indicator out yourself, here are the links where you can download it for free to your Metatrader 4 or Metatrader 5 platform:
https://www.mql5.com/en/market/product/63287 (MT4)
https://www.mql5.com/en/market/product/78812 (MT5)
Leave a Reply