Money Flow Matrix

This comprehensive indicator is a multi-faceted momentum and volume oscillator designed to identify trend strength, potential reversals, and market confluence. It combines a volume-weighted RSI (Money Flow) with a double-smoothed momentum oscillator (Hyper Wave) to filter out noise and provide high-probability signals.

Core Components

1. Money Flow (The Columns) This is the backbone of the indicator. It calculates a normalized RSI and weights it by relative volume.

Green Columns: Positive money flow (Buying pressure).

Red Columns: Negative money flow (Selling pressure).

Neon Colors (Overflow): When the columns turn bright Neon Green or Neon Red, the Money Flow has breached the dynamic Bollinger Band thresholds. This indicates an extreme overbought or oversold condition, suggesting a potential climax in the current move.

2. Hyper Wave (The Line) This is a double-smoothed Exponential Moving Average (EMA) derived from price changes. It acts as the "signal line" for the system. It is smoother than standard RSI or MACD, reducing false signals during choppy markets.

Green Line: Momentum is increasing.

Red Line: Momentum is decreasing.

3. Confluence Zones (Background) The background color changes based on the agreement between Money Flow and Hyper Wave.

Green Background: Both Money Flow and Hyper Wave are bullish. This represents a high-probability long environment.

Red Background: Both Money Flow and Hyper Wave are bearish. This represents a high-probability short environment.

Signal Guide

The Matrix provides three tiers of signals, ranging from early warnings to confirmation entries.

1. Warning Dots (Circles) These appear when the Hyper Wave crosses specific internal levels (-30/30).

Green Dot: Early warning of a bullish rotation.

Red Dot: Early warning of a bearish rotation.

Usage: These are not immediate entry signals but warnings to tighten stop-losses or prepare for a reversal.

2. Major Crosses (Triangles) These occur when Money Flow crosses the zero line, confirmed by momentum direction.

Green Triangle Up: Major Buy Signal (Money Flow crosses above 0).

Red Triangle Down: Major Sell Signal (Money Flow crosses below 0).

Usage: These are the primary trend-following entry signals.

3. Divergences (Labels "R" and "H") The script automatically detects discrepancies between Price action and the Hyper Wave oscillator.

"R" (Regular Divergence): Indicates a potential Reversal.

Bullish R: Price makes a lower low, but Oscillator makes a higher low.

Bearish R: Price makes a higher high, but Oscillator makes a lower high.

"H" (Hidden Divergence): Indicates a potential Trend Continuation.

Bullish H: Price makes a higher low, but Oscillator makes a lower low.

Bearish H: Price makes a lower high, but Oscillator makes a higher high.

Dashboard (Confluence Meter)

Located in the bottom right of the chart, the dashboard provides a snapshot of the current candle's status. It calculates a score based on three factors:

Is Money Flow positive?

Is Hyper Wave positive?

Is Hyper Wave trending up?

Readings:

STRONG BUY: All metrics are bullish.

WEAK BUY: Mixed metrics, but leaning bullish.

NEUTRAL: Metrics are conflicting.

WEAK/STRONG SELL: Bearish equivalents of the buy signals.

Trading Strategies

Strategy A: The Trend Rider

Entry: Wait for a Green Triangle (Major Buy).

Confirmation: Ensure the Background is highlighted Green (Confluence).

Exit: Exit when the background turns off or a Red Warning Dot appears.

Strategy B: The Reversal Catch

Setup: Look for a Neon Red Column (Overflow/Oversold).

Trigger: Wait for a Green "R" Label (Regular Bullish Divergence) or a Green Warning Dot.

Confirmation: Wait for the Hyper Wave line to turn green.

Strategy C: The Pullback (Continuation)

Context: The market is in a strong trend (Green Background).

Trigger: Price pulls back, but a Green "H" Label (Hidden Bullish Divergence) appears.

Action: Enter in the direction of the original trend.

Settings Configuration

The code includes tooltips for all inputs to assist with configuration.

Money Flow Length: Adjusts the sensitivity of the volume calculation. Lower numbers are faster but noisier; higher numbers are smoother.

Threshold Multiplier: Controls the "Neon" overflow bars. Increasing this (e.g., to 2.5 or 3.0) will result in fewer, more extreme signals.

Divergence Lookback: Determines how many candles back the script looks to identify pivots. Increase this number to find larger, macro divergences.

Disclaimer
This source code and the accompanying documentation are for educational and informational purposes only. They do not constitute financial, investment, or trading advice.