OPEN-SOURCE SCRIPT
The Vector Alignment Matrix (VAM) - Pivot Exit
Indicator Description: The Vector Alignment Matrix (VAM) – Pivot Exit Edition
The Vector Alignment Matrix (VAM) is an institutional-grade technical analysis tool designed for TradingView. It operates as a trend-following confluence engine, ensuring that lower-timeframe execution only occurs when supported by the "Weight of the Market"—the high-timeframe trend.
By automating the "Top-Down Analysis" methodology, VAM removes trader subjectivity and provides a clear, mechanical framework for entries and exits based on market structure.
Core Mechanics
1. The Global Matrix (HTF Alignment)
The indicator continuously monitors three critical timeframes: the Weekly (W), Daily (D), and 4-Hour (4H).
It uses a price-relative-to-range calculation to determine if the trend is Bullish or Bearish.
A "Matrix Bias" is established only when at least two of these timeframes agree.
This bias acts as a safety switch: if the Matrix is BULLISH, the indicator will ignore all sell signals, and vice versa.
2. Vector Execution (Break of Structure)
Once a bias is confirmed, the VAM looks for a Break of Structure (BOS) on the chart you are actively viewing.
It identifies significant Pivot Highs and Pivot Lows.
A signal is generated when price closes beyond a pivot in the direction of the Matrix Bias. This represents the moment the market "reveals its hand," confirming that the high-timeframe momentum is being absorbed by the lower timeframe.
3. Dynamic Pivot-Targeting (The Exit)
Unlike standard indicators that use arbitrary math for targets, the VAM uses Organic Exits.
Take Profit (TP): The indicator identifies the previous significant pivot level (resistance for longs, support for shorts) and sets it as the target.
Stop Loss (SL): The protective stop is anchored to the most recent opposing pivot, protecting the trade behind a structural barrier.
The Vector Alignment Matrix (VAM) is an institutional-grade technical analysis tool designed for TradingView. It operates as a trend-following confluence engine, ensuring that lower-timeframe execution only occurs when supported by the "Weight of the Market"—the high-timeframe trend.
By automating the "Top-Down Analysis" methodology, VAM removes trader subjectivity and provides a clear, mechanical framework for entries and exits based on market structure.
Core Mechanics
1. The Global Matrix (HTF Alignment)
The indicator continuously monitors three critical timeframes: the Weekly (W), Daily (D), and 4-Hour (4H).
It uses a price-relative-to-range calculation to determine if the trend is Bullish or Bearish.
A "Matrix Bias" is established only when at least two of these timeframes agree.
This bias acts as a safety switch: if the Matrix is BULLISH, the indicator will ignore all sell signals, and vice versa.
2. Vector Execution (Break of Structure)
Once a bias is confirmed, the VAM looks for a Break of Structure (BOS) on the chart you are actively viewing.
It identifies significant Pivot Highs and Pivot Lows.
A signal is generated when price closes beyond a pivot in the direction of the Matrix Bias. This represents the moment the market "reveals its hand," confirming that the high-timeframe momentum is being absorbed by the lower timeframe.
3. Dynamic Pivot-Targeting (The Exit)
Unlike standard indicators that use arbitrary math for targets, the VAM uses Organic Exits.
Take Profit (TP): The indicator identifies the previous significant pivot level (resistance for longs, support for shorts) and sets it as the target.
Stop Loss (SL): The protective stop is anchored to the most recent opposing pivot, protecting the trade behind a structural barrier.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.