> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/market-structure-and-rotation/trend-heatmap-matrix/usage.md). # Usage The Trend Heatmap Matrix is designed to be your final structural filter before entry, ensuring you have the weight of evidence on your side. ### How it works The indicator mathematically evaluates the state of every enabled component on every bar. For example, it checks if the MACD line is above its signal line, if price is above the VWAP, and if RSI is trending upwards. Each bullish state adds to the "Bull Score," and each bearish state adds to the "Bear Score." These scores are converted into percentages. If the Bull Percentage is >= 80%, the overall bias is "STRONG LONG." If it's >= 60%, it's "LEAN LONG." The same applies to the downside. ### Interpreting the Matrix Bias * **STRONG LONG (Bull Score >= 80%)**: The vast majority of momentum, volume, and trend indicators are aligned to the upside. This is a high-probability environment for trend-following long trades and breakouts. Shorting here is highly discouraged. * **LEAN LONG (Bull Score >= 60%)**: The trend is bullish, but some indicators are flashing warning signs (e.g., overbought oscillators or declining volume). Proceed with normal long setups but exercise caution with position sizing. * **NEUTRAL (Mixed Scores)**: The market is in equilibrium, consolidating, or transitioning. Trend-following systems typically chop in this environment. It is best to wait for a clear directional shift or rely strictly on mean-reversion boundary trading. * **LEAN SHORT (Bear Score >= 60%)**: The trend is structurally bearish. Favor short setups or tighten stops on remaining long positions. * **STRONG SHORT (Bear Score >= 80%)**: The market is in a deep, coordinated downtrend across multiple metrics. Focus entirely on shorting bounces and playing breakdowns. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.candelacharts.com/investing/market-structure-and-rotation/trend-heatmap-matrix/usage.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.