NextGen Trading Software

Gamma Levels are displaying key levels in Intraday Trading. The concept is similar to Pivots; however, the logic and calculation of those levels are much more complex.

Method of calculation
I load Options Data and Darkpool transactions from the selected market and process them with a Machine Learning algorithm. That way, I receive insights from data in the form of critical levels to observe. I export the data to the Quandl database. That way, through Pine Script, we can load them to this indicator. The levels change each new trading day.

How to use it in trading?
Those levels are very often used by Smart Money (what can be observed, for example, through Orderflow).
Major rules to play it are listed below:

• the higher Gamma (+/- 0.25, 0.5, 1.0), the more strong it is (in case of possible reversal).
• Extreme Low and Extreme High levels are in 8 out of 10 cases setting maximum range of the moves on instrument during Intraday session
• Passing last Gammas (either +1 or -1) means we have an anomaly in the form of Trend Day (typically 2-3 times max each time). A good entry strategy would be here to enter the trade after the price closes above/below the last Gamma.

For our subscribers, we give option to load additionally on the chart three new levels (in addition to those coming from Gamma Levels software):

• Gamma Flip – context explanation and why it’s major level, is described in separate post
• AI Support – level working similar to PUT Wall conception; easily explaining this is crucial Support Level identified by AI engine based on funds located by investors (Smart Money) in Options & Darkpool markets
• AI Resistance – level working similar to CALL Wall conception; accordingly to point above it’s critical Resistance Level

Automatic Scanner shows incoming the market Supply and Demand patterns, supported by AI Calculations. The script contains my improved definitions of VSA Signals, worked out and discovered through 3 years of tryouts.

The usage is as follows:

• signs appearing below the candle mean identified Demand – bullish signal
• signs appearing above the candle mean identified Supply – bearish signal

I recommend reading this post for traders who are familiar with VSA methodology and would like to learn more details.