Options Flow Sentiment

  • to be used for overview situation on D1 timeframe
  • red/green area represents the dominance & pressure of Bulls/Bears respectively on Options Market
  • perfect Bearish scenario: red background of slope + red line above green line
  • perfect Bullish scenario: green background of slope + green line above red line
  • blue vertical stripes identify Balance Points; on such candles/bars we draw the horizontal level on close of the candle/bar
  • Balance Point levels works as strong Support/Resistance Levels (I play only retests of those levels on D1 and/or breakouts)

Gamma Bands

– in addition, the yellow zone is the so-called Pivot zone that determines the daily sentiment

– High and Low levels of the previous day are also determined

– as an experimental feature, the so-called extreme levels for the day (Extreme High and Extreme Low) are determined, which are a bit closer than the extreme levels of Gamma + \ – 1. In general, these levels are rarely broken and you can treat them as expected range of the day.

Extreme High and Extreme Low levels with Gamma + \ – 1 levels create the so-called retreat zone. The break through the price of the extreme Gamma is treated as an anomaly in the market and after the breakout, continuation of the movement can be played (it occurs, for example, during a Trend Day when the price goes in one direction from the beginning of the session).

– in general, the larger the Gamma (further away from the Pivot zone) the stronger it is – so another strategy is to play the retreat of the earlier trend at Gamma + \ – 0.5 levels. If this level causes a reaction and we see a rebound then the price very often returns back to the Pivot zone

– rarely happening but almost always working is strategy of playing direction of breakthrough Gamma +/- 1 so the very last intraday levels. This is treated as anomaly on market, but also confirms strong pressure and domination of one side on the market. So to wrap up, breaking Gamma +1 from bottom by price means strong Bullish Pressure and in the moment of breaking Gamma +1, we enter into Long Position. The reverse is for Shorts – we enter when price breaks from top Gamma -1 level.

– another strategy is to use a supply or demand signal from VSA Scanner and use Gamma for Take Profit (TP) / Stop Loss (SL)

– a strong entry signal for the continuation of the move is breaking the Gamma level with the body of the candle on M10/15 and waiting for the retest of the broken level from the other side, SL behind the Gamma level (give some space to work, but not too much because there will always be more opportunities to enter – For example on gold recently I tried to enter 3 times and 2 times I hit the SL after breaking Gamma and the third time it was only the position came in and gave me a profit – the whole thing was positive because they were previously specific and not wide StopLoss)

Supply & Demand Scanner

– I use the script as a gameplay aid and I have it clearly shows which side dominates the market – supply or demand

– by observing who dominates the market and combining it with volume zones, we have a clear market analysis done 🙂

– volume zones usually work best with the first retest in the original direction of the zone – i.e. if the price has gone below the volume zone, the first retest of the zone is a good opportunity for Short (and similarly with longs)

– the breaking of the volume zones (switching to the other side of the zone compared to the original direction of the zone) is a strong signal of a change in market sentiment

Trade Decision process

1

Key Levels from Daily Analysis & D1 charts

Including Support/Resistance levels from Balance Points marked by Options Sentiment Indicator & levels from Options flow data posted on website

2

Gamma Intraday Levels

- Gamma +/- 0.5 bounce back to Pivot
- Extreme Low and High of the Day
- passing Gamma +/- 1 in direction of breakout (anomaly)
- zone between Gamma +0.25 and -0.25 as No Trades Zone for triggering new positions

3

VSA Scanner

Demand & Supply signals + Volume Zones

4

Market Structure

Highs/Lows + Demand/Supply Zones + Virgin VPOCs

Intelligent.
Solutions.
Start having an edge on the market today with the data!