The XO Signals Metatrader 4 forex indicator is a technical indicator that does not average data array.
Hence, the decision to Buy/Sell is executed in one swoop.
The XO Indicator is an offshoot of the point-and-figure indicators, which implies that price is not plotted against time as seen on time-based charts.
Instead, what it does is to plot price against changes in direction.
This version of the XO indicator outlines lime and red vertical bars within its indicator window as a gauge for bullish and bearish market sentiments in that order.
Free Download
Download the “xo-indicator.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below displays the XO Indicator Metatrader 4 forex indicator in action.
Basic Trading Signals
- Buy Signal: Go long when the lime vertical bars of the XO Signals Metatrader 4 forex indicator stacks up above the zero center line.
- Sell Signal: Go short when the red vertical bars of the XO Signals Metatrader 4 forex indicator lines up below the zero signal level.
- Exit buy trade: Close all buy orders while a bullish trend is continuing, the XO Indicator pops up a red vertical bar below the zero signal level.
- Exit sell trade: Close all sell orders while a bearish trend is running, the XO Indicator displays a lime vertical bar above the zero center line.
Tips: Interestingly, the XO Indicator has just a single adjustable parameter.
However, it does add a lot of information depth to trading (based on the desired currency pair), thus helping traders improve their profit outlook.
Try it for scalping, day trading and swing trading purposes.
MT4 XO Signals + Free Forex Scalping Indicator Scalping Strategy
This strategy combines the XO Signals MT4 Indicator with a free Forex scalping indicator for MT4.
The XO Signals indicator displays a histogram made of vertical bars: green (or lime) bars above zero signal bullish sentiment, and red bars below zero indicate bearish sentiment.
The free scalping indicator also uses a histogram that changes color relative to a zero line: when it turns green above zero, that’s a buy signal; when red below zero, that’s a sell signal.
By combining these two tools, this strategy aims to scalp trades on short intraday timeframes (M1, M5, M15) with both trend/momentum confirmation and timely entries.
The XO histogram provides the broader directional bias (bullish or bearish), while the scalping indicator offers more precise entry signals.
This reduces false entries and increases the probability of catching short, strong moves in the direction of momentum.
Buy Entry Rules
- The XO Signals histogram must show green (lime) bars stacking above the zero line, indicating bullish sentiment.
- The free scalping indicator must turn green above its zero line, signaling a buy.
- Enter a long trade at the close of the candle when the scalping histogram turns green while the XO histogram remains bullish.
- Place a stop loss just below the most recent swing low on the selected timeframe.
- Set a take profit target at about 1 to 1.5 times the stop loss distance, or use a small trailing stop if the move extends.
Sell Entry Rules
- The XO Signals histogram must show red bars below zero, indicating bearish sentiment.
- The free scalping indicator must turn red below its zero line, signaling a sell.
- Enter a short trade at the close of the candle when the scalping histogram turns red while XO remains bearish.
- Place the stop loss just above the most recent swing high on the same timeframe.
- Set take profit at 1 to 1.5 times the risk, or trail the stop manually if the price moves strongly.
Advantages
- Combines a broader momentum/trend view (XO) with precise short-term entries (scalping indicator).
- Provides clear and simple visual signals: histogram colors and zero-line cross.
- Works on very short timeframes (M1, M5, M15) for true scalping.
- Defined risk with stop loss and potential take profit levels.
- Can adapt to any currency pair, as both indicators are not limited by specific markets.
Drawbacks
- Tight stop losses might be hit often if the price is volatile and not trending.
- Trailing stops or manual exits may be difficult on very short timeframes without discipline.
Example Case Study 1
On the USD/CHF M5 chart, the XO Signals histogram turned green and formed a small stack of bars above the zero line, signaling bullish sentiment.
Shortly after, the free scalping indicator’s histogram changed from red to green, crossing above its own zero line.
At the close of that candle, a long trade was opened.
The stop loss was placed just under the recent swing low, around 6 pips. Take profit was set at 9 pips (about 1.5 × risk).
The price moved upward steadily, and the trade hit its take profit, capturing a sharp intraday move in alignment with the momentum.
Example Case Study 2
On GBP/AUD M1 during the London session, the XO histogram printed consecutive red bars below zero, indicating a bearish trend.
Then, the scalping indicator switched to red and dropped below its zero line.
A short position was entered at the candle close.
The stop loss was placed 5 pips above a recent swing high, and the take profit was set at 8 pips.
The price dropped quickly, the move was clean, and the take profit was reached in just a few bars, showing how the combined indicators can work very effectively even on a fast, volatile pair.
Strategy Tips
- Prefer trading during active sessions (e.g., London, New York) when volatility gives better scalping opportunities.
- Wait for clearly defined histogram changes: do not enter when colors are flickering or just hovering around the zero line.
- Use a demo account first to tune the stop loss and take profit levels according to the behavior of the chosen currency pair.
- Always monitor any major economic news; if high-impact news is about to be released, it may be wise to pause scalping.
- Keep a scalp journal to track which pairs, timeframes, and setups give the best results, and refine entries based on performance.
Download Now
Download the “xo-indicator.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (KirPER), width, & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
Installation
Copy and paste the xo-indicator.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)
