1.2 Voodoo Matrix

Introduction

The Voodoo Matrix is an entry timing tool based on oscillators and trends. It's tuned to work in confluence with the Voodoo Support and Resistance indicator to provide an intuitive way of confirming and entering into high probability setups. The current tuning is based on setups with a high rate of success and a minimum risk/reward ratio of 1:2. 

The Voodoo Matrix provides trade entry hints and information about the current market behavior (trending or ranging). If the market is trending, it also shows the trend strength and direction. For best results. It is a secondary indicator meaning it should be us and should be used along with the Voodoo Support and Resistance indicator but also with Voodoo RSI as they provide confluence needed to confirm a setup, resulting in only entering trade setups with a higher probability of success.

Don't try to trade based on 'magic entry hints' only as it can result in a loss of money. For further information how to use it check the video tutorials.

Visual overview

Full size: https://www.tradingview.com/x/Ha1YrVxd/

Trend/range setup - provides information about current possible trade strategy. Following a RANGE indicator, Voodoo Matrix suggests that the safest way to trade will be between the local support and resistance shown by Voodoo Support and Resistance, and following a TREND indicator, it is likely that a trending strategy is more profitable.

ADX trend indicator - providing color based information on direction of the short-term trend. This is the most reactive trend indication shown by Voodoo Matrix. This can even be used for counter-main-trend scalping.

  • Green - uptrend
  • Red - downtrend
  • Gray - indecision

EMA trend indicator - providing color based information on direction of the long-term trend. It is based on the behavior of a longer period EMAs.

  • Green - uptrend
  • Red - downtrend
  • Gray - indecision

Trend strength histogram - information on current price momentum strength. Best used in confluence with the short term trend indicator.

Trend confluence (background color) - changes background color when both short and long term trends are in confluence.

Fast oscillator - oscillator based on stochastic RSI, modified to provide better information on timing and price movement. It's fast moving which helps time the shorter-term moves.

Slow oscillator - oscillator based on stochastic RSI, modified to provide better information on timing and price movement. It's slow moving and provides useful information about the price direction and strength of the move.

Stochastic oscillator - simple stochastic oscillator. Best used with both Fast and Slow Oscillators to get best timing and price movement strength and direction.

Overbought zone - area of the chart where the modified stochastic oscillator suggests the market is currently overbought.

Oversold zone - area of the chart where the modified stochastic oscillator suggests the market is currently oversold.

Neutral zone - area of the chart where the modified stochastic oscillator suggests the market is currently neutral.

Entry timing hints - signalling possible entry points. Each triangle corresponds by color with an oscillator it is based on.

Inputs overview


Price source - OHLC source for Voodoo Matrix calculation. The default setting is to use the candle close price

Trend EMA length - length of the EMA used for long-term calculations.

Trend EMA lookback - number of bars used for calculating trend change confirmation. Higher values inflict more lag.

ADX length - main variable used for fine tuning the trend/range setup calculation.

ADX lookback - number of candles used for calculating the trend detection indicators including trend/range setup calculation. Higher values inflict more lag.

ADX smooth - smoothing variable trend detection indicators including trend/range setup calculation. Higher values inflict more lag.

RSI - the time period to be used in calculating the RSI for Fast and Slow Oscillators.

RSI EMA - length of EMA based on RSI as a source.

Slow oscillator - the time period for slow moving oscillator.

Fast oscillator - the time period for fast moving oscillator.

Stochastic K - the time period to be used in calculating the %K.

Stochastic D - the time period to be used in calculating the %D, represents the deviation between price and the average of previous prices (momentum).

Stochastic smooth - the smoothing variable to be used in calculating the Stochastic.

Overbought zone - value between 50 and 100 at which the overbought zone starts (this value and above is shown as the overbought zone).