INVITE-ONLY SCRIPT
LuxAlgo® - Oscillator Matrix™
Updated
Oscillator Matrix™ is an all-in-one indicator that incorporates 6+ unique components designed for interoperability & confluence with one another to provide a powerful trend following & reversal detection experience.
Users can create various ways to utilize the indicator's features together such as looking for excess money flowing into the market alongside strong reversal signals appearing or getting real-time divergence signals alongside a lack of money flowing into the market to predict upcoming trends.
This indicator is described as an 'Oscillator Matrix' as it's made up of many different components that can create a systematic approach to analyzing markets alone, however, the indicator also can serve as a great secondary piece to a user's primary analysis with or without our other LuxAlgo Premium indicators.
🔶 FEATURES
Below we describe each component of Oscillator Matrix™ in order of each's significance for the most confluent analysis possible.
Users can create various ways to utilize the indicator's features together such as looking for excess money flowing into the market alongside strong reversal signals appearing or getting real-time divergence signals alongside a lack of money flowing into the market to predict upcoming trends.
This indicator is described as an 'Oscillator Matrix' as it's made up of many different components that can create a systematic approach to analyzing markets alone, however, the indicator also can serve as a great secondary piece to a user's primary analysis with or without our other LuxAlgo Premium indicators.
🔶 FEATURES
Below we describe each component of Oscillator Matrix™ in order of each's significance for the most confluent analysis possible.
- Money Flow - Easily see the amount of buying or selling liquidity entering the market by analyzing the green & red waves and how they react with their thresholds to achieve further insight. Best to analyze first before considering any signals the indicator can generate.
- Thresholds - Dynamic levels that align above/below the Money Flow to show at which level significant buying or selling is actually taking place.
- Overflow - Small lighter waves that occur within the Money Flow's display when excess buying or selling activity is occurring to accurately predict upcoming reversals.
- Hyper Wave - An oscillator ribbon in green/grey that provides highly reactive trend following signals & powerful divergence detection.
- Real-Time Divergences - Real-time divergence labels that appear on the Hyper Wave oscillator's adaptive ribbon. A highly effective approach to a concept that's not typically done for oscillators. Users can also increase the sensitivity of divergences within the settings.
- Reversal Signals - Small dots on the upper or lower boundaries represent high frequency points that indicate possible reversals or a warning signal to upcoming larger reversal signals which are indicated separately by the large triangular arrows on the top & bottom of the indicator's panel.
- Confluence Zones - Allows the Money Flow & Hyper Wave oscillator to be used together to display easily interpretable shades of bullish & bearish activity. Brighter, more vibrant colors indicate strong bullish or bearish confluence between these 2 features.
- Confluence Meter - An optional display at the current bar to easily find the current level of confluence between all features within Oscillator Matrix™ indicated by the arrow pointing to bullish or bearish levels. (Disabled by default)
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Generally, we recommend using these features in order from first to last, whereas analyzing components of the Smart Money Flow category prior to considering other features in your analysis is most productive to ensure you find proper confluence alongside any signal that is generated.
🔶 USAGE
In the image below, we can see 5 points of interest to a user analyzing Oscillator Matrix™ based on various different behaviors.Point 1: Here we can see a large reversal signal arrow at the bottom of the panel. These signals, like all signals in LuxAlgo Premium & any indicator in general are not meant to be used as buy/sell signals themselves.
What makes this signal particularly more of interest opposed to other reversal signals that may not play out right away is the Money Flow that corresponding as weak. We can tell the Money Flow is weak because it is not near the red threshold level.
This indicates to us that there is not real selling pressure occurring and that the market could easily reverse in these conditions.
Point 2: In this specific area we can notice the Money Flow in green is moving upwards alongside the green threshold level. This combination indicates a high probability there is a lot of real buying volume coming into the market, opposed to the previous example (point 1) where the Money Flow was not near the threshold level.
We can also notice the Hyper Wave Oscillator is printing a green dot while above the 50 value on Oscillator Matrix™ panel, further indicating a likely bullish impulse to come.Point 3: There are multiple indications here showing us the market may potentially be reversing. The most notable being the larger red reversal arrow, however, as we mentioned previously these cannot be used by themselves.
A further indication is that on the Money Flow we can see Overflow has occurred by the lighter small wave that has appeared & is now turning downwards. This indicates that an excess of buyers have come into the market & are likely to be washed out with a move to the downside.
We can see this happen once again about 8 candles later paired with a high frequency reversal signal (red dot) which marked a local high before the larger impulse down.Point 4: You can notice during the recent 25 or so candles the high frequency reversal points (green & red dots) have been highly effective for indicating potential local highs & lows in real-time.
There was a previous real-time bullish divergence detected while Money Flow was strongly in the red and this did indicate a small move upwards, however, with the Money Flow still holding in the red, another high frequency reversal dot, and then as the Money Flow begins to decrease further, we see a clean local top detected here at point 4.Point 5: As the lower Confluence Zone moved into the bright red, we saw a large move to the downside and a large bullish reversal signal printed in real-time as well.
Just like point 1, we have a very clear indication the selling has stopped as we further analyze the Money Flow is nowhere near it's true Activity Line.
This analysis combined gave us a further indication of a larger reversal which played out with no lag at all as all reversal signals are fully predictive separate from the Hyper Wave oscillator itself, which can be used as a further trend following approach alongside signals & money flow.
🔶 NAVIGATING MARKET CONDITIONS
In the image above we can see another example with 6 new points of interest marked in green & red shaded areas, all accompanied by a list of possible interpretations of the indicator.
The importance of this usage example is to demonstrate the ability to focus on certain components of the indicator during specific market conditions. For any indicator attempting to catch reversals, trending market conditions will be a detriment to its usability.
The same amount of the components within Oscillator Matrix™ will support trending market conditions as there are components to support ranging market conditions. The indicator further aims to provide clear abilities to detect when the market is likely trending or ranging.
With an understanding of the components within the Smart Money Flow section particularly such as the Overflow & Thresholds, it's possible to develop a more significant understanding of when to consider the market is trending vs when to consider the market may be ranging.
By doing this, we can potentially determine at certain points when to 'filter out' reversal signals or to just consider them merely indications of local tops/bottoms opposed to significant tops/bottoms.
Analyzing a significant Overflow particularly is useful to consider a trend potentially coming to an end. For example, at point 5 in the image above we had a clear downtrend only until there was a very considerable amount of Overflow that begun a real reversal.
We recommend studying the outlined chart above & the list of indications at each shaded area to develop a deep understanding of how to navigate varying market conditions & spot various points of confluence during reversals.
🔶 CONCLUSION & ACCESS
This indicator is an extremely comprehensive approach to an oscillator that allows users to further develop a systematic approach to trading and can be paired great alongside other forms of technical analysis such as our LuxAlgo Signals & Overlays indicator.
Although we believe this indicator to be useful, it's critical to understand that past performance is not necessarily indicative of future results and there are many more factors that go into being a profitable trader.
You can see the Author's instructions below to get instant access to Oscillator Matrix™ & our LuxAlgo Premium suite.
Release Notes
Changelog:
- Added 3 new oscillators, Confirmation, Normalized, and Cycle
- Option to use a color gradient, with two color modes available
- Added an oscillator dashboard
- Renamed old "Lux Oscillator" as "Legacy" in "Type"
Release Notes
- New Directional Heatmap oscillator type
- Added Directional Heatmap Method setting
- Set Normalized oscillator type as default
- Fixed legacy oscillator not being affected by input source
- Minor Changes
Release Notes
Removed version number from dashboard and moved it to short-title.Release Notes
Lux Oscillator v3.0- New Lux oscillator type.
- Exclusive dashboard for the Lux oscillator type.
- New alert conditions for the Lux oscillator type.
- New design for the input settings window.
- Added tooltips to the input settings window.
Release Notes
Lux Oscillator 3.0.1- Fixed the oscillator not being able to be loaded on a chart
- Improved divergences detection for the Lux Oscillator style
- Scaled legacy oscillator in a 0/100 range
- Minor changes
Release Notes
Upgraded dashboard and added alerts for divergences + institutional activity.Release Notes
Lux Oscillator v4.0 introduces a new classic oscillator type with dynamic overbought/oversold zones & reversal points. The zones are enabled by default on all other oscillator types including Advanced, Normalized, and Legacy. Changed default settings (previously 14 length & 14 confirmation smoothing & smoothing method was previously EMA). Release Notes
Lux Oscillator Premium v4.01 fixes NaN values on the classic oscillator appearing on certain tickersRelease Notes
Lux Oscillator Premium v4.1 upgrades the Classic Oscillator to be more responsive to trends, enables the Legacy mode by default, and reskins the Advanced & Normalized modes to follow trends better & show data clearer. To update: refresh, remove & re-add the indicator to your chart.Release Notes
Lux Algo Oscillators Premium v5.0 includes the Ultimate MACD, Ultimate RSI, and renames Legacy to Ultimate Stochastic alongside an upgrade to the usability of dynamic overbought & oversold zones. To update: Refresh, remove & re-add the indicator to your chart.Release Notes
Lux Algo Premium Oscillators v5.0.1 changes the Ultimate RSI to perform better in trending markets & generate better divergences. To update: Refresh, remove & re-add the indicator to your chart.Release Notes
LuxAlgo Oscillator Matrix v6 is a full revamp which features 1 extremely powerful panel of 6+ unique components designed for interoperability & confluence with one another to provide a powerful trend following & reversal detection experience.Smart Money Flow analysis including Money Flow, Overflow, and Thresholds to see the significance of the buying & selling liquidity in the market.
Hyper Wave oscillator overlay as a green/grey ribbon to see momentum divergences in real-time.
Reversal Signals (normal/strong) to find confluent reversal signals that can be used alongside Smart Money Flow & the Hyper Wave oscillator.
Confluence features such as the Confluence Zones & Confluence Meter that can easily allow you to see when features aligning fully or partly bullish / bearish within the LuxAlgo Oscillator Matrix.
To update to v6, refresh TradingView, remove + re-add the LuxAlgo Oscillator Matrix from your invite-only scripts. There is a legacy version available within our Discord as well that you can get access to on our website available within the Author's Instructions below.
Release Notes
LuxAlgo Oscillator Matrix v6.0.1 fixes the behavior of Smart Money Flow components only specifically on certain assets such as equities & futures to ensure it matches the intended usage. To get this update, refresh TradingView & then re-add the indicator to your chart from your invite-only scripts.Release Notes
LuxAlgo Oscillator Matrix v6.1 introduces a full custom alert creator section within the settings to allow users the ability to create custom alerts based on various components of the LuxAlgo Oscillator Matrix. This update also changes the plot names/alert messages from "turning point up/down" to "HWO Up/Down". To get this update, refresh TradingView (browser/app), then remove & re-add the LuxAlgo Oscillator Matrix from your invite-only scripts + save your chart layout.
Release Notes
Minor changesRelease Notes
Added steps to custom alert creator. Removed session filters from custom alert creator.Release Notes
Fixed "reversal down +" not working in the custom alert creatorRelease Notes
- Fixed an issue with overflow not highlighting/triggering alerts on certain conditions in the custom alert creatorRelease Notes
Fixed custom alert creator reversal "Any Reversal" condition not being highlightedRelease Notes
Fixed a bug preventing the confluence meter market from using user set color settings.Release Notes
New "OR" operator in custom alert condition, allowing to get alerted for multiple user set conditions.Release Notes
- Users can now access historical confluence meter values- New confluence meter conditions in the custom alert creator
- Users can now access variables for upper/lower confluence zones
Release Notes
You can now set a custom alert message for "any alert() function call" conditions, using new placeholders.Added Money Flow/HyperWave toggles to disable all elements associated with the feature.
Release Notes
- Added placeholders for the numerical input of the custom alert creator second external source conditionRelease Notes
- New invalidation step type- New supported invalidation behaviors
Release Notes
- New "All" filter step type in the custom alert creator- Users can now specify the maximum intervals (in bars) allowed between step conditions
- Minor changes
Release Notes
- Minor changesRelease Notes
- Added one additional external condition in the custom alert creatorRelease Notes
- Added indicator placeholders for "any alert() function call" message- Added divergences highlighting on the price chart
- Minor changes
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All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Join our 150k+ community: discord.gg/lux
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.