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 should be used along with the Voodoo RSI and Voodoo Stochastic as they provide confluence needed to confirm a setup, resulting in only entering trade setups with a higher probability of success.

Visual overview

Full size: https://www.tradingview.com/x/7iWxUFKz/

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.

Short-term trend indicator - providing color based information on direction of the short-term trend. This is based on sophisticated algorithms and 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

Long-term 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.

Modified stochastic oscillator - oscillator based on stochastic RSI, modified to provide better information on timing and price movement. It also provides color information about underlying indicator overbought and oversold status.

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.

Entry timing hints - signalling possible entry points.

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.

Trend detector variable - main variable used for fine tuning the trend/range setup calculation

Trend detector lookback - number of candles used for calculating the trend detection indicators. Higher values inflict more lag.

RSI - the time period to be used in calculating the RSI

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

StochRSI K - the time period to be used in calculating the %K

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

StochRSI length - the time period to be used in calculating the Stochastic

Overbought zone - value between 0 and 100 at which the overbought zone starts (this value and above is shown as the overbought zone)

Oversold zone - value between 0 and 100 at which the oversold zone ends (this value and below is shown as the oversold zone)

No repaint checkbox - toggles 'no repaint' option giving confirmed signals but with slight lag. (repaint is a characteristic of some versions of TradingView's Pine scripting language where signals may change between timeframes.)