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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.