Vortex Trend Matrix [JOAT]

Vortex Trend Matrix [JOAT] - Multi-Factor Trend Confluence System

Introduction and Purpose

Vortex Trend Matrix is an open-source overlay indicator that combines Ichimoku-style equilibrium analysis with the Vortex Indicator to create a comprehensive trend confluence system. The core problem this indicator solves is that single trend indicators often give conflicting signals. Price might be above a moving average but momentum might be weakening.

This indicator addresses that by combining five different trend factors into a single composite score, making it easy to identify when multiple factors align for high-probability trend trades.

Why These Components Work Together

Each component measures trend from a different perspective:

1. Cloud Position - Price above/below the equilibrium cloud indicates overall trend bias. The cloud acts as dynamic support/resistance.

2. TK Relationship - Conversion line vs Base line (like Tenkan/Kijun in Ichimoku). Conversion above Base = bullish momentum.

3. Lagging Span - Current price compared to price N bars ago. Confirms whether current move has follow-through.

4. Vortex Indicator - VI+ vs VI- measures directional movement strength. Provides momentum confirmation.

5. Base Direction - Whether the base line is rising or falling. Indicates medium-term trend direction.

How the Trend Score Works

float trendScore = 0.0

// Cloud position (+2/-2)
trendScore += aboveCloud ? 2.0 : belowCloud ? -2.0 : 0.0

// TK relationship (+1/-1)
trendScore += conversionLine > baseLine ? 1.0 : conversionLine < baseLine ? -1.0 : 0.0

// Lagging span (+1/-1)
trendScore += laggingBull ? 1.0 : laggingBear ? -1.0 : 0.0

// Vortex (+1.5/-1.5)
trendScore += vortexBull ? 1.5 : vortexBear ? -1.5 : 0.0

// Base direction (+0.5/-0.5)
trendScore += baseDirection * 0.5

Score ranges from approximately -6 to +6:
- +4 or higher = STRONG BULL
- +2 to +4 = BULL
- -2 to +2 = NEUTRAL
- -4 to -2 = BEAR
- -4 or lower = STRONG BEAR

Signal Types

• TK Cross Up/Down - Conversion line crosses Base line (momentum shift)
  
• Base Direction Change - Base line changes direction (medium-term shift)
  
• Strong Bull/Bear Trend - Score reaches +4/-4 (high confluence)
  

Dashboard Information

• Trend - Overall status with composite score
  
• Cloud - Price position (ABOVE/BELOW/INSIDE)
  
• TK Cross - Conversion vs Base relationship
  
• Lagging - Lagging span bias
  
• Vortex - VI+/VI- relationship
  
• VI+/VI- - Individual vortex values
  

How to Use This Indicator

For Trend Following:
1. Enter long when trend score reaches +4 or higher (STRONG BULL)
2. Enter short when trend score reaches -4 or lower (STRONG BEAR)
3. Use cloud as dynamic support/resistance for entries

For Momentum Timing:
1. Watch for TK Cross signals for entry timing
2. Base direction changes indicate medium-term shifts
3. Vortex confirmation adds conviction

For Risk Management:
1. Exit when trend score drops to neutral
2. Use cloud edges as stop-loss references
3. Reduce position when score weakens

Input Parameters

• Conversion Period (9) - Fast equilibrium line
  
• Base Period (26) - Slow equilibrium line
  
• Lead Span Period (52) - Cloud projection period
  
• Displacement (26) - Cloud and lagging span offset
  
• Vortex Period (14) - Period for vortex calculation
  
• VI+ Strength (1.10) - Threshold for strong bullish vortex
  
• VI- Strength (0.90) - Threshold for strong bearish vortex
  

Timeframe Recommendations

• 4H-Daily: Best for equilibrium-based analysis
  
• 1H: Good for intraday trend following
  
• Lower timeframes may require adjusted periods
  

Limitations

• Equilibrium calculations have inherent lag
  
• Cloud displacement means signals are delayed
  
• Works best in trending markets
  
• May whipsaw in ranging conditions
  

Open-Source and Disclaimer

This script is published as open-source under the Mozilla Public License 2.0 for educational purposes.

This indicator does not constitute financial advice. Trend analysis does not guarantee profitable trades. Always use proper risk management.

- Made with passion by officialjackofalltrades