Matrix Series

The Matrix Series indicator provides a specialized oscillator-based visualization that transforms price action into custom candles and dynamic support/resistance zones to identify overbought and oversold market conditions.

Usage

The Usage section focuses on how the script interprets price momentum through its unique candle-based oscillator. Traders can use the Matrix Series to spot trend exhaustion and potential reversals.

• Matrix Candles: The script generates internal candles based on smoothed price deviations. Green candles typically suggest bullish momentum, while red candles suggest bearish momentum.
• Dynamic Support & Resistance: The green and red horizontal-step lines represent dynamic zones calculated via a percentage of the highest and lowest oscillator values. When the oscillator candles interact with these zones, it may indicate a price extreme.
• Overbought/Oversold Signals: Cross icons (shapes) appear above or below the matrix candles when the oscillator exceeds the defined OB/OS thresholds (default at 200 and -200). These serve as visual alerts for potential trend exhaustion.
• Trend Reversals: A change in the color of the matrix candles often precedes price reversals on the main chart, allowing traders to gauge the strength of current momentum.

Details

The Matrix Series is built upon a combination of smoothed price calculations and Commodity Channel Index (CCI) logic. The core oscillator uses an Exponential Moving Average (EMA) and Standard Deviation of the average price to normalize volatility.

The tool further refines this data through multiple layers of smoothing (determined by the "Smoother" input) to create "up" and "down" values that form the Matrix Candles. The Support and Resistance lines are derived from the highest and lowest values of the oscillator over a user-defined lookback period, scaled by a percentage to create a reactive envelope around the momentum data.

Settings

• Smoother: Controls the length of the EMA and Standard Deviation used to calculate the core oscillator. Higher values result in smoother, slower-reacting candles.
• Sup/Res Period: Sets the lookback window for identifying the highest and lowest oscillator values used for the dynamic zones.
• Sup/Res Percentage: Determines the width of the dynamic support and resistance lines relative to the price range.
• Price Period: Adjusts the lookback period for the underlying CCI calculation used in the support/resistance logic.
• Overbought: Defines the fixed level (default 200) where the oscillator is considered overbought.
• Oversold: Defines the fixed level (default -200) where the oscillator is considered oversold.
• Show OB/OS: Toggles the visibility of the fixed overbought and oversold threshold lines.
• Dynamic zones: Toggles the visibility of the reactive support and resistance lines.

FAQ

How do I interpret the Matrix Candles? Matrix Candles represent smoothed momentum rather than direct price. When the candles are green and rising, bullish momentum is strong; when they are red and falling, bearish momentum is dominant.

What do the cross shapes above the candles signify? The cross shapes indicate that the internal oscillator has moved beyond the Overbought or Oversold thresholds, suggesting that the current trend may be overextended and due for a pullback or consolidation.

How can I access the Matrix Series? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.