Bollinger Bands Delta Matrix Analytics [BDMA]

Bollinger Bands Delta Matrix Analytics (BDMA) v7.0
Deep Kinetic Engine – 5x8 Volatility & Delta Decision Matrix

1. Introduction & Concept
Bollinger Bands Delta Matrix Analytics (BDMA) v7.0 is an analytical framework that merges:

- Spatial analysis via Bollinger Bands (%B location),
- with a 4-factor Deep Kinetic Engine based on:
• Total Volume
• Buy Volume
• Sell Volume
• Delta (Buy – Sell) Z-Scores

and converts them into an expanded 5×8 decision matrix that continuously tracks where price is trading and how the underlying orderflow is behaving.

BDMA is not a trading system or strategy. It does not generate entry/exit signals.
Instead, it provides a structured contextual map of volatility, volume, and delta so traders can:

- identify climactic extensions vs. fakeouts,
- distinguish strong initiative moves vs. passive absorption,
- and detect squeezes, traps, and liquidity voids with a unified visual dashboard.

2. Spatial Engine – Bollinger S-States (S1–S5)
The spatial dimension of BDMA comes from classic Bollinger Bands.
Price location is expressed as Percent B (%B) and mapped into 5 spatial states (S-States):

S1 – Hyper Extension (Above Upper Band)
Price has pushed beyond the upper Bollinger Band.
Often associated with parabolic or blow-off behavior, late-stage momentum, and elevated reversal risk.

S2 – Resistance Test (Upper Zone)
Price trades in the upper Bollinger region but remains inside the bands.
Represents a sustained test of resistance, typically within an established or emerging uptrend.

S3 – Neutral Zone (Middle)
Price hovers around the mid-band.
This is the mean reversion gravity field where the market often consolidates or transitions between regimes.

S4 – Support Test (Lower Zone)
Price trades in the lower Bollinger region but inside the bands.
Represents a sustained test of support within range or downtrend structures.

S5 – Hyper Drop (Below Lower Band)
Price extends below the lower Bollinger Band.
Often aligned with panic, forced liquidations, or capitulation-type behavior, with increased snap-back risk.

These 5 S-States define the vertical axis (rows) of the BDMA matrix.

3. Deep Kinetic Engine – 4-Factor Z-Score & D-States (D1–D8)
The Deep Kinetic Engine transforms raw volume and delta into standardized Z-Scores to measure how abnormal current activity is relative to its recent history.
For each bar:

- Raw Buy Volume is estimated from the candle’s position within its range
- Raw Sell Volume is complementary to buy volume
- Raw Delta = Buy Volume – Sell Volume
- Total Volume = Buy Volume + Sell Volume

These 4 series are then normalized using a unified Z-Score lookback to produce:

1. Z_Vol_Total – overall activity and liquidity intensity
2. Z_Vol_Buy – aggression from buyers (attack)
3. Z_Vol_Sell – aggression from sellers (defense or attack)
4. Z_Delta – net victory of one side over the other

Thresholds for Extreme, Significant, and Neutral Z-Score levels are fully configurable, allowing you to tune the sensitivity of the kinetic states.
Using Z_Vol_Total and Z_Delta (plus threshold logic), BDMA assigns one of 8 Deep Kinetic states (D-States):

D1 – Climax Buy
Extreme Total Volume + Extreme Positive Delta → Buying climax or blow-off behavior.

D2 – Strong Buy
High Volume + High Positive Delta → Confirmed bullish initiative activity.

D3 – Weak Buy / Fakeout
Low Volume + High Positive Delta → Bullish delta without commitment, low-liquidity breakout risk.

D4 – Absorption / Conflict
High Volume + Neutral Delta → Aggressive two-way trade, strong absorption, war zone behavior.

D5 – Neutral
Low Volume + Neutral Delta → Low-energy environment with low conviction.

D6 – Weak Sell / Fakeout
Low Volume + High Negative Delta → Bearish delta without commitment, low-liquidity breakdown risk.

D7 – Strong Sell
High Volume + High Negative Delta → Confirmed bearish initiative activity.

D8 – Capitulation
Extreme Volume + Extreme Negative Delta → Panic selling or capitulation regime.

These 8 D-States define the horizontal axis (columns) of the BDMA matrix.

4. The 5×8 BDMA Decision Matrix
The core of BDMA is a 5×8 matrix where:

- Rows (1–5) = Spatial S-States (S1…S5)
- Columns (1–8) = Kinetic D-States (D1…D8)

Each of the 40 possible combinations (SxDy) is pre-computed and mapped to:

- a Status or Regime Title (for example: Climax Breakout, Bear Trap Spring, Capitulation Breakdown),
- a Bias (Climactic Bull, Neutral, Strong Bear, Conflict or Reversal Risk, and similar labels),
- and a Strategic Signal or Consideration (for example: High reversal risk, Wait for confirmation, Low probability zone – avoid).

Internally, BDMA resolves all 40 regimes so the current state can be displayed on the dashboard without performance overhead.

5. Key Regime Families (How to Read the Matrix)
5.1. Breakouts and Breakdowns

Climax Breakout (Top-side)
Spatial S1 with Kinetic D1 or D2
Bias: Explosive or Extreme Bull
Signal:
- Strong or climactic upside extension with abnormal bullish orderflow.
- Trend continuation is possible, but reversal risk is extremely high after blow-off phases.

Low-Conviction Breakout (Fakeout Risk)
S1 with D3 (Weak Buy, low liquidity)
Bias: Weak Bull – Caution
Signal:
- Breakout not supported by volume.
- Elevated risk of failed auction or bull trap.

Capitulation Breakdown (Bottom-side)
Spatial S5 with Kinetic D8
Bias: Climactic Bear (panic)
Signal:
- Capitulation-type selling or forced liquidations.
- Trend can still proceed, but snap-back or violent short-covering risk is high.

Initiative Breakdown vs. Weak Breakdown
- Strong, high-volume breakdown typically corresponds to D7 (Strong Sell).
- Low-volume breakdown often corresponds to D6 (Weak Sell or Fakeout) with potential for failure.
5.2. Absorption, Traps and Springs

Absorption at Resistance (Top-side conflict)
S1 or S2 with D4 (Absorption or Conflict)
Bias: Conflict – Extreme Tension
Signal:
- Heavy two-way trade near resistance.
- Potential distribution or reversal if sellers begin to dominate.

Bull Trap or Failed Auction
Typically S1 with D6 (Weak Sell breakdown behavior after a top-side attempt)
Indicates a breakout attempt that fails and reverses, often after poor liquidity structure.

Absorption at Support and Bear Trap (Spring)
S4 or S5 with D4 or D3
Bias: Conflict or Weak Bear – Reversal Risk
Signal:
- Aggressive buying into lows (spring or shakeout behavior).
- Potential bear trap if price reclaims lost territory.
5.3. Trend Phases

Strong Uptrend Phases
Typically seen when S2–S3 combine with strong bullish kinetic behavior.
Bias: Strong or Extreme Bull
Signal:
- Pullbacks into S3 or S4 with supportive kinetic states often act as trend continuation zones.

Strong Downtrend Phases
Typically seen when S3–S4 combine with strong bearish kinetic behavior.
Bias: Strong or Extreme Bear
Signal:
- Rallies into resistance with strong bearish kinetic backing may act as continuation sell zones.
5.4. Neutral, Exhaustion and Squeeze

Exhaustion or Liquidity Void
S1 or S5 with D5 (Neutral kinetics)
Bias: Neutral or Exhaustion
Signal:
- Spatial extremes without kinetic confirmation.
- Often marks the end of a move, with poor follow-through.

Choppy, Low-Activity Range
S3 with D5
Bias: Neutral
Signal:
- Low volume, low conviction market.
- Typically a low-probability environment where standing aside can be logical.

Squeeze or High-Tension Zone
S3 with D4 or tightly clustered kinetic values
Bias: Conflict or High Tension
Signal:
- Hidden battle inside a volatility contraction.
- Often precedes large directionally-biased moves.

6. Dashboard Layout & Reading Guide
When Show Dashboard is enabled, BDMA displays:

1. Title and Status Line
Name of the current regime (for example: Climax Breakout, Bear Trap Spring, Mean Reversion).

2. Bias Line
Plain-language summary of directional context such as Climactic Bull, Strong Bear, Neutral, or Conflict and Reversal Risk.

3. Signal or Strategic Notes
Concise guidance focused on risk and context, not entries. For example:
- High reversal risk – aggressive traders only
- Wait for confirmation (break or rejection)
- Low probability zone – avoid taking new positions

4. Kinetic Profile (4-Factor Z-Score)
Shows the current Z-Scores for Total Volume (Activity), Buy Volume (Attack), Sell Volume (Defense), and Delta (Net Result).

5. Matrix Heatmap (5×8)
Visual representation of S-State vs. D-State with color coding:
- Bullish clusters in a green spectrum
- Bearish clusters in a red spectrum
- Conflict or exhaustion zones in yellow, amber, or neutral tones

The dashboard can be repositioned (top right, middle right, or bottom right) and its size can be adjusted (Tiny, Small, Normal, or Large) to fit different layouts.

7. Inputs & Customization
7.1. Core Parameters (Bollinger and Z-Score)

- Bollinger Length and Standard Deviation define the spatial engine.
- Z-Score Lookback (All Factors) defines how many bars are used to normalize volume and delta.
7.2. Deep Kinetic Thresholds

- Extreme Threshold defines what is considered climactic (D1 or D8).
- Significant Threshold distinguishes strong initiative vs. weak or fakeout behavior.
- Neutral Threshold is the band within which delta is treated as neutral.

These thresholds allow you to tune the sensitivity of the kinetic classification to fit different timeframes or instruments.
7.3. Calculation Method (Volume Delta)

Geometry (Approx)
- Fast, non-repainting approach based on candle geometry.
- Suitable for most users and real-time decision-making.

Intrabar (Precise)
- Uses lower-timeframe data for more precise volume delta estimation.
- Intrabar mode can repaint and requires compatible data and plan support on the platform.
- Best used for post-analysis or research, not blind automation.
7.4. Visuals and Interface

- Toggle Bollinger Bands visibility on or off.
- Switch between Dark and Light color themes.
- Configure dashboard visibility, matrix heatmap display, position, and size.

8. Multi-Language Semantic Engine (Asia and Middle East Focus)
BDMA v7.0 includes a fully integrated multi-language layer, targeting a wide geographic user base.

Supported Languages:
English, Türkçe, Русский, 简体中文, हिन्दी, العربية, فارسی, עברית

All dashboard labels, regime titles, bias descriptions, and signal texts are dynamically translated via an internal dictionary, while semantic meaning is kept consistent across languages.
This makes BDMA suitable for multi-language communities, study groups, and educational content across different regions.
However, due to the heavy computational load of the Deep Kinetic Engine and TradingView’s strict Pine Script execution limits, it was not possible to expand support to additional languages. Adding more translation layers would significantly increase memory usage and exceed runtime constraints. For this reason, the current language set represents the maximum optimized configuration achievable without compromising performance or stability.

9. Practical Usage Notes
BDMA is most powerful when used as a contextual overlay on top of market structure (HH, HL, LH, LL), higher-timeframe trend, key levels, and your own execution framework.

Recommended usage:
- Identify the current regime (Status and Bias).
- Check whether price location (S-State) and kinetic behavior (D-State) agree with your trade idea.
- Be especially cautious in climactic and absorption or conflict zones, where volatility and risk can be elevated.

Avoid treating BDMA as an automatic green equals buy, red equals sell tool.
The real edge comes from understanding where you are in the volatility or kinetic spectrum, not from forcing signals out of the matrix.

10. Limitations & Important Warnings
BDMA does not predict the future.
It organizes current and recent data into a structured context.

Volume data quality depends on the underlying symbol, exchange, and broker feed.
Forex, crypto, indices, and stocks may all behave differently.

Intrabar mode can repaint and is sensitive to lower-timeframe data availability and your plan type.
Use it with extra caution and primarily for research.

No indicator can remove the need for clear trading rules, disciplined risk management, and psychological control.

11. Disclaimer
This script is provided strictly for educational and analytical purposes.
It is not a trading system, signal service, financial product, or investment advice.

Nothing in this indicator or its description should be interpreted as a recommendation to buy or sell any asset.
Past behavior of any indicator or market pattern does not guarantee future results.
Trading and investing involve significant risk, including the risk of losing more than your initial capital in leveraged products.
You are solely responsible for your own decisions, risk management, and results.

By using this script, you acknowledge that you understand these risks and agree that the author or authors and publisher or publishers are not liable for any loss or damage arising from its use.