# Market State Matrix Market State Matrix is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. The Market State Matrix compresses trend, momentum, volatility, volume, and price structure into one radial dashboard: five concentric rings crossed by twelve lookback slices spanning 8 to 220 bars. Aligned colors signal confluence, mixed slices expose internal conflict, and a phase highlighter marks one of four fixed positions on the wheel, chosen from the fastest (8-bar) slice's trend regime and RSI. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 1, 2026. - Access: free. - Concepts: [Trend/range Classifiers](https://www.luxalgo.com/library/concept/trend-range-classifiers/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn3gb8004svhsgf5yss9td - Page: https://www.luxalgo.com/library/indicator/market-state-matrix/ **Market State Matrix** renders market conditions as a radar drawn on the price chart, to the right of the latest bar: five concentric rings (EMA-based trend regime, RSI-driven momentum intensity, an ATR volatility glow, volume pressure, and higher-high/lower-low price structure) cut into twelve radial slices with lookbacks from 8 to 220 bars. It works like a [trend/range classifier](https://www.luxalgo.com/library/concept/trend-range-classifiers/) you read at a glance, answering whether the environment supports continuation, reversal, or consolidation without juggling five separate panes. ## How to Trade the Market State Matrix? - **Full alignment**: a solid path of matching colors from inner to outer ring is confluence: trend, momentum, volatility, volume, and structure backing one bias. - **Internal conflict**: mixed colors inside a slice expose disagreement, such as bullish structure with fading momentum, a caution flag for continuation and a hint of exhaustion or mean reversion. - **Volatility ignition**: when the gold ring brightens and volume pressure lights up alongside it, the market may be entering a more explosive phase. - **Regime core**: the center reflects the fastest regime layer, an anchor for direction when the outer rings turn mixed. Short slices react first to momentum shifts; long slices move with the broader regime. Weak fast slices against aligned slow ones can read as a pullback within trend, while conflict spreading into the stable slices may mark a more meaningful change of state. The Dominant Phase Highlighter arcs over one of four fixed positions on the wheel, chosen from the fastest (8-bar) slice's trend regime and whether its RSI is above or below 50; it draws no text label. ## Market State Matrix Settings - **Horizontal Offset**: repositions the Matrix for readability. - **Core Radius**: size of the central directional anchor. - **Ring Width** and **Ring Gap**: thickness and spacing of the concentric layers. - **Show Dashboard Legend**: toggles the "Matrix Layers" reference table. ## Frequently Asked Questions ### What does full alignment mean in practice? Multiple rings within one slice confirming the same direction, often a sign of conviction and a friendlier environment for directional trades. Mixed slices argue for patience or tighter trade filtering. ### What does the Matrix add over a single composite score? The Matrix keeps its five dimensions visible instead of collapsing them, so you can see exactly where agreement breaks down. If you'd rather have classic indicators fused into one number, [Market Sentiment Technicals](https://www.luxalgo.com/library/indicator/market-sentiment-technicals/) distills momentum, trend, and structure into a single normalized gauge. ### Where do I get the Market State Matrix? It's free in the LuxAlgo Library. Add it from this page. Quant, our coding agent, can backtest ideas built on it without leaving the page. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Signals & Overlays](https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays/) (Adaptive Parameterization): markdown at https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays.md - [Adaptive MACD](https://www.luxalgo.com/library/indicator/adaptive-macd/) (Adaptive Parameterization): markdown at https://www.luxalgo.com/library/indicator/adaptive-macd.md - [Indicator Configuration Forecasting](https://www.luxalgo.com/library/indicator/indicator-configuration-forecasting/) (Adaptive Parameterization): markdown at https://www.luxalgo.com/library/indicator/indicator-configuration-forecasting.md - [Volatility Regime Switches](https://www.luxalgo.com/library/indicator/volatility-regime-switches/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/volatility-regime-switches.md - [HTF Sweep Signals](https://www.luxalgo.com/library/indicator/htf-sweep-signals/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/htf-sweep-signals.md - [Oscillator Matrix](https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix.md - [RSI Regime Filter](https://www.luxalgo.com/library/indicator/rsi-regime-filter/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/rsi-regime-filter.md - [Signal Forge](https://www.luxalgo.com/library/indicator/signal-forge/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/signal-forge.md --- Source: https://www.luxalgo.com/library/indicator/market-state-matrix/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/