The Maloma Channel indicator for mt4 (Metatrader 4) draws a trend-following channel around the candlesticks based on the Maloma trend method.
The indicator gets displayed in the main MT4 chart window and consists of an upper and lower channel line.
The red channel line acts as resistance, while the blue line acts as support.
Buy & Sell Trade Example
- Open a buy trade when the candlestick touches the lower blue channel line and the Maloma channel is trending upwards.
- Open a sell trade when the candlestick touches the upper red channel line and the Maloma channel is trending downwards.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Maloma channel.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Maloma Channel mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method when trading with the Maloma Channel indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Trend channel
Does the indicator repaint? No.
MT4 Maloma Channel and Xmaster Formula Forex Strategy
The MT4 Maloma Channel and Xmaster Formula Forex Strategy is a trend-following method that combines price channel structure with precise signal arrows.
It helps traders identify clear buy and sell zones with confidence and is suitable for both beginners and experienced traders.
The system works well on M15, H1, and H4 charts, where price movements are cleaner and more predictable.
The Maloma Channel Forex Indicator displays a dynamic price channel that automatically adjusts to market conditions.
When the channel is sloping upward, it signals a bullish market. When the channel slopes downward, it indicates a bearish environment.
The Xmaster Formula Forex Indicator complements it by printing arrows directly on the chart—upward arrows for buy signals and downward arrows for sell signals.
By combining the Maloma Channel’s trend direction with the Xmaster Formula’s entry alerts, traders can enter trades only when both indicators confirm the same direction.
This greatly reduces false signals and improves trade accuracy.
Buy Entry Rules
- Wait for the Maloma Channel to slope upward, showing a clear bullish trend.
- Look for an upward-pointing arrow from the Xmaster Formula indicator.
- Open a buy trade at the next candle after the arrow appears.
- Set a stop loss 20 to 30 pips below the lower Maloma Channel boundary.
- Take profit when the price approaches the upper channel line or after achieving a 1:2 risk-to-reward ratio.
Sell Entry Rules
- Wait for the Maloma Channel to slope downward, confirming a bearish trend.
- Look for a downward-pointing arrow from the Xmaster Formula indicator.
- Enter a sell position at the next candle after the arrow appears.
- Place a stop loss 20 to 30 pips above the upper Maloma Channel line.
- Take profit when the price nears the lower channel line or after reaching a 1:2 risk-to-reward ratio.
Advantages
- Combines trend direction with clear signal confirmation for higher accuracy.
- Works on multiple timeframes and pairs.
- Visually simple and easy to follow.
- Reduces emotional trading by waiting for both indicators to agree.
- Good risk-to-reward potential with well-defined targets.
Drawbacks
- May give fewer signals during sideways or ranging markets.
- False signals can occur in choppy conditions with flat channel slopes.
- Late entries are possible if the signal appears after a strong move has already started.
- Requires discipline to wait for full confirmation from both indicators.
Case Study 1: EUR/USD H1
On the EUR/USD H1 chart, the Maloma Channel turned upward, showing a new bullish phase.
A green upward arrow appeared from the Xmaster Formula at 1.0860, confirming the buy signal.
A trade was opened at 1.0862 with a stop loss at 1.0830.
The price moved smoothly within the channel and reached 1.0915, resulting in a gain of +53 pips.
The strategy effectively filtered noise and followed the channel direction for a strong profit.
Case Study 2: USD/JPY H4
On the USD/JPY H4 chart, the Maloma Channel started to slope downward.
Shortly after, a red downward arrow from the Xmaster Formula appeared at 151.40, signaling a sell opportunity.
A short trade was placed at 151.38 with a 35-pip stop loss above the channel.
Over the next 12 hours, the price dropped to 150.60, generating a +78 pip profit.
The combination of channel direction and arrow signal made it easy to identify the beginning of a trend shift.
Strategy Tips
- Use higher timeframes like H1 or H4 to filter out smaller market noise.
- Avoid trading when the Maloma Channel is flat, as this indicates a range.
- For added precision, trade only in the direction of the overall trend on a higher timeframe.
- Move the stop loss to breakeven once the price moves halfway to your target.
- Use the Xmaster arrows as confirmation only—never trade against the channel slope.
The MT4 Maloma Channel and Xmaster Formula Forex Strategy is an efficient trend-based approach that blends market structure with entry confirmation.
The Maloma Channel defines the market direction, while the Xmaster Formula pinpoints the exact moments to act.
Together, they provide a balanced, disciplined method for identifying profitable opportunities with confidence and clarity.
Download Now
Download the “Maloma channel.mq4” indicator for Metatrader 4
