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Directional Matrix

By LuxAlgoMay 28, 2021

Static chart image

Directional Matrix condenses trend into a dashboard: it computes an SMA, TMA, WMA, and linear regression across a whole range of lengths and colors one cell per calculation: bullish when that average is rising, bearish when it is falling. Because the slope of a moving average is itself a trend condition, the grid amounts to dozens of trend votes cast at once, with the top-left cell reporting the bullish share.

How to Trade the Directional Matrix?

  • Grid mostly bullish: broad agreement across lengths and average types supports a trending long bias; a mostly bearish grid supports the opposite.
  • Top-left percentage: the proportion of rising cells, a single consensus number to track as conditions shift.
  • Normalized Change Mode: cells grade change intensity from 0 to 1 on a color gradient, separating decisive moves from drift.

The four columns corroborate each other in useful ways: a rising SMA means price exceeds its level from p bars ago, a rising WMA means price sits above an SMA of period p+1, and a rising REG means a WMA sits above an SMA of the same period. Read together, the matrix behaves like a moving average ribbon with the geometry stripped out: pure direction, no overlapping lines.

Directional Matrix Settings

  • Maximum Length: the top of the period range evaluated for all four indicators.
  • Minimum Length: where the range starts.
  • Step: the gap between consecutive periods. Smaller steps add rows and detail, larger steps keep the grid compact.
  • Src: the data source feeding the calculations.
  • Normalized Change Mode: replaces direction signs with normalized change magnitudes.
  • A style block covers dashboard location and size, text/frame color, bullish and bearish cell colors, and cell transparency.

Frequently Asked Questions

Free on Vela

Run it on Vela. Go further with a paid plan.

  • Up to 500 strategy alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • Up to 100,000 monthly credits for Quant to customize it
  • Futures data alongside crypto, stocks, forex and commodities
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Also works on

TradingView
NinjaTrader
Original indicatorBuilt in-house by LuxAlgo

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