The directional heatmap is closely related to the directional matrix present in the Lux Algo premium indicator dashboard, both return the direction of an indicator using a specific period, however, the directional heatmap returns this information over time.
The user can select the indicator used by the directional heatmap from the Directional Heatmap Method dropdown menu (Linreg by default)
The directional heatmap displays 12 levels, each level value indicates the period of the selected indicator, this period is also displayed near the end of each level.
Each line can take two colors over time, blue, or red, with a blue color meaning that the selected indicator is increasing while red indicates that the selected indicator is decreasing.
When most of the levels are blue at a certain point, it means the market is up-trending, while a majority of red levels means the market is down trending. When all the levels have the same color at a certain point it means the market is strongly trending, while mixed colors can indicate either a ranging market or the presence of a retracement.