The Matrix Indicator

The Matrix Indicator is a mix of 3 Groups (25 in all) of CT Indicators that are combined into one charted indicator using a given weighted value to give more value to those indicators that you feel have more value.

Matrix Combinations

The Matrix Indicators

The Matrix is made up with any combination of the following indicator groups.

  • Volume differences
  • Chart patterns
  • Trading Indicators
Each of the Matrix CT Indicators can be displayed separately and/or combined into The Matrix Indicator.

How we create The Matrix is by turning on or off any combination of indicators.

When an indicator is active in the matrix, that value is added to the matrix Open, High, Low, Last and charted like a chart.

The Matrix Indicator will show real time trends and confirm market momentum.

Cycle Counts and Matrix Projection Windows.

Moving Average - This setting will average the values received to smooth out the matrix chart look.

Cycles / Breakout Lines - This setting will count the up and down cycles and plot horizontal lines at cycle highs and lows we call breakout lines.

Projection windows - This setting will show faded windows above when moving up and below when moving down the next bar's projected move. We start at the mid point as default and suggest 0 to 125% of the current bar's range up or down. We have found the matrix will trade within these values the next bar and give you insight of the move before it happens visually.

Apply Additional Time Frames to CycleTrader Indicators -

Additional Time Frames - With a selected group of indicators, you can pick longer term TF1 or TF2 time frames.

The benefit to this is you can now use this values based on longer term chart trends rather than the chart being used.

Two additional Time Frame (TF) options:
1. Pick from any type of chart
2. Pick any time frame, tick size, etc.

Example - You apply to trade in the direction of the GreenLine, but you want it based on TF1, 15 min chart, but trade a 2 to 5 minute chart. then The Matrix will apply the weighted value based on the direction of the 15 minute GreenLine direction and not the 2 or 5 minute chart.

Select the new bar's open price - The previous bar's Close or Mid Level of the previous bar's range -

New bar's open based on previous close or mid range of previous bar -

Using the Mid-Range can sometimes turn the indicator faster.

Charts to the left -
Top Matrix is displaying the open as the previous bar's close.

Bottom panel is the Mid-Level Range as the new bar's open.

All The Matrix Indicator combinations will add or subtract a weighted or actual values to and from the math of The Matrix.

This math plots the Open, High, Low, Last like a chart. There are 17 combinations of indicators that make up The Matrix.

Matrix Indicators / Inputs

Section 1 - VMI a & VMI b - Volume Momentum Indicator -

Measures the difference in volume delta going back X bars using an average.

VMI a and VMI b

Inputs :
2. Vol = Number of minimum contracts used to calculate the value. If set to 5, then it would be 5 lot or more.
 
3. Average Period = The average of these values to smooth out The Matrix chart.
 

4. Bars back means it will only calculate the difference going back X bars. We use 10 as default.

VMI a is defaulted to a 3 average.

VMI b is defaulted to a 7 average, but we are now using 9 for The Matrix calculations.

CT 01 - VMI

Section 2 - Current Bar's Volume Delta

Current Volume Delta Profile

1a. Value Options -Choose from a given weighted value of being + or – ?.  Or, choose the actual value of the current bar’s volume delta difference.

1b. Turn Value – This only applies to weighted value.

2. Min Lot Size – This is the minimum of contracts used to calculate. If set for 5, then only 5 lots or more would be considered in the calculations.

3. Average – When selected, it averages out the volume for the Open, High, Low, Last.

4. Avg Bars Back – This is part of input 3, average – how many bars back.

 

Weighted Value

Times Indicator Value

Two Value Options –
 
1. Weighted Value – A given weighted value to be added or subtracted to The Matrix value(s). Top Panel
 
2.Times Indicator Value – Uses the actual current volume difference for each new bar unless section 3 & 4 are active, then it’s the average value of the true volume difference delta.- Lower Panel
CT 05 - Current Volume Delta Difference

Section 3 - Breakouts - Continued Vol 1 - Direction of Swings

Input 3 – Direction of Level 1 Volume Delta Difference

1a. Turn Value – Set the value of the turn to add of subtract from The Matrix values.

2. Vol Volatility – This is the lot size to use in the indicator. If set to 1, then 1 lots o more. If set to 10, then it will only use 10 lots or more and not look at 9 or under lot size.

3. Trade Dir of Avg on/off – Uses the up and down direction for value.

3a. Average Period If you select 3 for example, then it will average all the values by 3 to smooth the chart out.

4. Set Bars Back – on/off – When selected, it will only use X bars back set in 4a.

4a. Bars Back to Count Bars back in used in calculations.

Weighted Turn Value

cycletrader lev 1 contnued chart
CT 06 - Lev 1 Contnued Chart

Section 3b - Cycle Swing Volume Difference - "coming"

Input 3b – Direction of Level 1 Volume Delta Difference

1a. Value Option

1. Weighted Value – Set the value of the turn to add of subtract from The Matrix values.

2. Times Indicator Value – Use the value of the volume difference.

2. Vol Volatility – This is the lot size to use in the indicator. If set to 1, then 1 lots o more. If set to 10, then it will only use 10 lots or more and not look at 9 or under lot size.

3. Trade Dir of Avg on/off – Uses the up and down direction for value.

3a. Average Period If you select 3 for example, then it will average all the values by 3 to smooth the chart out.

4. Set Bars Back – on/off When selected, it will only use X bars back set in 4a.

4a. Bars Back to Count Bars back in used in calculations.

Weighted Turn Value

Continue Vol 1 Direction - Chart
cycletrader lev 1 contnued chart
CT 06 - Lev 1 Contnued Chart

Section 4a - Ops up - Ops Down

CT 12 – Ops up -Ops Down

1. Turn Value – Uses the up and down direction for value.

2. Time Frame – choose from Current Chart, TF1 or TF2.

TF1 - TF2 - Additonal Time Frames

3. Ticks Above / Below If you select 3 for example, then it will average all the values by 3 to smooth the chart out.

Weighted Turn Value

CT 11 - Ops up - Ups Down Inputs
Ops up Ops Down Indicator - Matrix
Ops up Ops Down Indicator - Matrix

Section 4b - Above / Below Current Bar's Open

CT 12 – Above / Below Current Bar’s Open

1a. Turn Value – Weighted Value of being above or below the current bar’s open.

2. Time Frame – 3 time frames

1.Current Chart

2. TF1 or TF2 – These time frames can be set

TF1 - TF2 - Additonal Time Frames

3. Ticks Above / Below Number of ticks above or below the SMA to activate.

Weighted Turn Value

CT 12 Above - Below Current Bars Opens
CT 12 - Above / Below Open Inputs
CT 20 Direction of SMA

Section 5a & 5b - Direction of SMA(s)

CT 20 – Direction of the SMA

1a. Turn Value – Weighted Value either the direction of the SMA or both in the direction of the SMA and being above or below the SMA combination.

1b. Time Frame – 3 time frames

1.Current Chart

2. TF1 or TF2 – These time frames can be set

TF1 - TF2 - Additonal Time Frames

2. Moving Average Number of ticks above or below the open to activate.

CT 20 - SMA Inputs
Above - Below SMA CycleTrader
Above - Below SMA CycleTrader

Section 6 - Open - Close Double SMA - EMA

CT 21 – Open – Close Double SMA – EMA

1a. Turn Value – Weighted Value either the direction of the SMA or both in the direction of the SMA and being above or below the SMA combination.

2. Length – 3 time frames

1.Current Chart

2. TF1 or TF2 – These time frames can be set

3. Average Mode SMA or EMA

4. Average of Average Length Its the 2nd Average of the Average to smooth it out.

Open - Close Double SMA - EMA Inputs
CT 21 Open - Close Double SMA - EMA

Section 8 - Close Strength Direction / and / or - 50% of CS to be long or short

CT 30 – Close Strength Value (CS)

1a. 1b. Turn Value –

1. Weighted Value added or subtracted to The Matrix –

2. Times Value – Takes the value of the indicators and times it by 1c. If CS is 20, then it would be 20×3 = 60

3. 4. – Average The average of the values to smooth it out.

Close Strength Value Inputs
CT 30 - Close Strength Value (CS)

Section 9 - Tick Momentum (TM) Direction / Times the value by X

CT 31 – Tick Momentum

1a. 1b. Turn Value –

1. Weighted Value added or subtracted to The Matrix –

2. Times Value – Takes the value of the indicators and times it by 1c. If CS is 20, then it would be 20×3 = 60

3. 4. – Average The average of the values to smooth it out.

Close Strength Value Inputs
CT 30 - Close Strength Value (CS)

Section 10 - Direction of Swing High / Low Cycle Trend

CT 14 – Direction of Swing High / Low Cycles

1a. 1b. Turn Value –

1. Weighted Value added or subtracted to The Matrix –

1b. Time Frame – 3 time frames

1.Current Chart

2. TF1 or TF2 – These time frames can be set

3. – Average The average of the values to smooth it out.

Swing HIgh Low Inputs
Swing HIgh Low Inputs
CT 30 - Close Strength Value (CS)

Section 11 to 13 - Direction of CT Indicators - any CT Indicator

CT 11 to 13 – Direction of Indicators – any other CT Indicator  –

1a. 1b. Weighted Value Options  –

1. Weighted Value added or subtracted to The Matrix –

2. Times Value – This will use the value of the indicator times by 1b. the value…and add to, or subtract from The Matrix math. Normally keep 1b. around 10 to 20.

2. Indicator – Use this drop down menu to choose any of the CycleTrader Indicators –

4. 4a. – Points move up or down To activate the signal, the indicator would have to move X points up or down.

5. VMIa or VMIb option  We added a way to add the VMIa or VMIb value to these values and average them into the equation for The Matrix.

Direction of CT Indicators
Direction of CT Indicators - any CT Indicator​

Section 14 - Direction of PPI "Power Play Indicator"

1a. 1b. Weighted Value Options  –

1. Weighted Value added or subtracted to The Matrix –

2. Times Value – This will use the value of the indicator times by 1b. the value…and add to, or subtract from The Matrix math. Normally keep 1b. around 10 to 20.

1c. Time Coefficient – Time 1b by X value when 1a Time Value is selected.

All of section 2 – Choose from any combination of CycleTrader Indicators for the PPI combination. The PPI is all the indicators combined into 1 indicator.

1m and 1n are part of the PPI.

2. Average is used to average the values.

3., 4., 5. – Are there to activate the PPI value on if above or below the Buy / Sell Lines.

PPI PowerPlay Indicator
Direction of CT Indicators
PPI Indicator - Cycle Trader
PPI Indicator - Cycle Trader

Section 15 - Direction of DSI "Double Smooth Indicator"

CT 32 – DSI “Double Smooth Indicator”

Math of DSI:
Source: Open / Close / Medium

  1.  Take the EMA Length Average
  2.  Average the EMA Length
  3.  DoubleStoch Average #2 of the average of the EMA Average
Then we run these values between 0 and 100.

3. 4. Length – Average –

#3 is the length of the EMA and #4 is double average of the EMA.

7. VMIa / VMIb – This tells the matrix to add the VMI to the calculations of DSI for the Matrix.

Direction of DSI
CycleTrader DSI Indicator
CycleTrader DSI Indicator

Section 16 - Direction of MSI "Momentum Smooth Indicator"

CT 33 – MSI – “Momentum Smooth Indicator”

Math of MSI
Source: The averaged Candle Stick Range

  1.  Averaging the Average Length Range
  2.  Averaging again with Double Average
  3.  DoubleStoch The Average
Then we run these values between 0 and 100.

2., 3., & 4. Length – Average –

#2 is the Average Length, #3, is the average of the average and #4 is double average of that average.

7. VMIa / VMIb – This tells the matrix to add the VMI to the calculations of DSI for the Matrix.

MSI Matrix Input Values
MSI Matrix Input Values
MSI Chart
CycleTrader DSI Indicator

Section 17 - OHL Detrend Value X Value -

CT 18 – OHL Detrend

Measure the distance (Number of ticks) the market is from medium level between the High and Low of the day.

We then times this level by default of 20 –

If the level is at 40, then it would be 40 X 20 = 800 added to the Matrix value.

If the level is at -50, then it would be 50 X 20 = -1,000 subtracted from the Matrix value.

CycleTrader DSI Indicator
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