Gamma Levels - Options Flow

# 📊 Gamma Levels - Options Flow Indicator

## TradingView Free Indicator - By AsiaQuant

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## 🎯 What Is This?

**Gamma Levels** is a simplified TradingView indicator that shows estimated support and resistance levels based on institutional options positioning. It helps traders identify key price zones where options market makers are likely positioned.

### Key Features:
- **⚡ Gamma Flip Level**: The inflection point where dealer hedging behavior changes
- **🔴 Call Wall**: Overhead resistance from call option concentration
- **🟢 Put Support**: Downside support from put option concentration
- **🎯 Trading Zone**: The range between support and resistance
- **📊 Regime Detection**: Positive vs Negative Gamma environments

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## 📈 How To Use

### 1. **Gamma Flip Level (⚡)**
The Gamma Flip is the most critical level. It represents where market maker hedging flips from stabilizing to destabilizing:

- **Above Gamma Flip**: Positive gamma environment → Lower volatility, mean reversion
- **Below Gamma Flip**: Negative gamma environment → Higher volatility, trend continuation

**Trading Strategy:**
- When price is **above** gamma flip: Fade extremes, trade ranges
- When price is **below** gamma flip: Follow momentum, breakouts more likely

### 2. **Call Wall (🔴)**
The Call Wall represents overhead resistance where heavy call open interest sits:

- Acts as a **magnet** when price approaches from below
- Acts as **resistance** when price tests it
- Breaking above often leads to squeeze moves

**Trading Strategy:**
- Use as profit target for long positions
- Watch for rejection and reversal setups
- Breaking through = potential gamma squeeze

### 3. **Put Support (🟢)**
The Put Support level shows where heavy put positioning provides downside support:

- Acts as **support** on pullbacks
- Breaking below signals bearish momentum
- Often bounces near this level

**Trading Strategy:**
- Use as entry zone for long positions
- Stop loss just below this level
- Breaking through = potential flush lower

### 4. **Trading Zone (Blue Shaded Area)**
The zone between Call Wall and Put Support shows the expected trading range:

- **Narrow zones** = Low volatility, potential breakout setup
- **Wide zones** = High volatility, choppy action expected
- Price tends to stay within this zone

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## 🚦 Regime Guide

### Positive Gamma Regime (Green Background)
- Price above Gamma Flip
- Lower volatility expected
- Mean reversion strategies work better
- Selling premium strategies favorable

### Negative Gamma Regime (Red Background)
- Price below Gamma Flip
- Higher volatility expected
- Trend following strategies work better
- Directional trades more profitable

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## ⚠️ Important Limitations

This is a **SIMPLIFIED** indicator that uses price action and volume as proxies for options positioning. It does NOT use real options chain data.

### What This Indicator Does:
✅ Estimates levels using VWAP and ATR
✅ Shows general zones of interest
✅ Provides educational framework
✅ Works on any timeframe

### What This Indicator CANNOT Do:
❌ Access real options open interest
❌ Calculate actual gamma exposure
❌ Account for 0DTE dynamics
❌ Include Vanna/Charm effects
❌ Use volatility surface interpolation

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## 🔓 Want The Full Professional Version?

### **GEX Pro - Institutional Grade Analysis**
**Visit: [gexpro.asiaquant.com](gexpro.asiaquant.com)**

#### What You Get:
- ✅ **Real Options Data**: Live OI and volume from actual options chains
- ✅ **20+ Metrics**: GEX, DEX, Vanna, Charm, Volga, IV Skew, and more
- ✅ **0DTE Logic**: Proprietary algorithm for same-day expiration positioning
- ✅ **Volatility Surface**: Cubic spline interpolation eliminates "ghost walls"
- ✅ **Shadow Gamma**: Advanced second-order risk exposure
- ✅ **Multi-Expiration**: Analyze 0DTE, weekly, and monthly expirations simultaneously
- ✅ **Directional Scoring**: AI-powered conviction scoring with 5 components
- ✅ **Trade Ideas**: Specific setups based on positioning
- ✅ **440+ Tickers**: SPY, QQQ, IWM, AAPL, TSLA, NVDA, and more

#### The Difference:
| Feature | TradingView Free | GEX Pro |
|---------|------------------|---------|
| Data Source | Price/Volume Proxy | Real Options Chains |
| Gamma Calculation | Estimated | Actual Black-Scholes |
| Advanced Greeks | ❌ | ✅ Vanna, Charm, Volga |
| 0DTE Handling | ❌ | ✅ Volume Priority |
| Vol Surface | ❌ | ✅ Cubic Spline |
| Conviction Score | ❌ | ✅ 5-Component Model |
| Trade Setups | ❌ | ✅ Directional Ideas |

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## 📚 Educational Resources

### Recommended Reading:
1. **"Gamma Exposure and Market Dynamics"** - Understanding dealer hedging
2. **"Volatility Trading"** by Euan Sinclair - Options Greeks in practice
3. **"The Volatility Surface"** by Jim Gatheral - Advanced vol modeling

### Key Concepts:
- **Gamma Exposure (GEX)**: The rate of change of delta with respect to price
- **Dealer Hedging**: How market makers adjust their stock positions
- **Positive Gamma**: Dealers buy dips, sell rips → stabilizing
- **Negative Gamma**: Dealers sell dips, buy rips → destabilizing
- **Vanna**: Sensitivity to spot and volatility changes
- **Charm**: Time decay of delta

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## 🎓 Best Practices

### ✅ DO:
- Use in conjunction with price action and volume
- Combine with support/resistance levels
- Pay attention to regime changes
- Use for planning entries/exits
- Monitor gamma flip proximity

### ❌ DON'T:
- Rely solely on this indicator
- Ignore overall market conditions
- Trade against strong trends
- Over-leverage based on levels
- Treat estimates as absolute truth

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## 📊 Example Scenarios

### Scenario 1: Approaching Call Wall
- Price rallies toward Call Wall ($595 on SPY)
- Volume increases as it approaches
- **Action**: Consider taking profits on longs, watch for rejection

### Scenario 2: Gamma Flip Cross
- Price crosses below Gamma Flip
- Regime changes to Negative Gamma
- **Action**: Reduce range trading, prepare for momentum

### Scenario 3: Bouncing Off Put Support
- Price tests Put Support ($580 on SPY)
- High volume at the test
- **Action**: Entry for longs with stop below support

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## 🔧 Settings Guide

### Lookback Period (Default: 20)
- **Lower (10-15)**: More responsive, better for day trading
- **Higher (30-50)**: Smoother, better for swing trading

### Volatility Multiplier (Default: 1.5)
- **Lower (1.0-1.2)**: Tighter zones, more frequent tests
- **Higher (2.0-3.0)**: Wider zones, fewer tests but stronger

### Display Options
- Toggle individual levels on/off based on your strategy
- Customize colors to match your chart theme

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## ❓ FAQ

**Q: Why don't the levels match actual options strikes?**
A: This free version uses price action approximations. For real strike-level precision, use GEX Pro.

**Q: How often should levels update?**
A: The indicator recalculates every bar. For real options data that updates throughout the day, use GEX Pro.

**Q: Can I use this for day trading?**
A: Yes, but it's approximations. For intraday 0DTE positioning, GEX Pro has specialized logic.

**Q: What timeframe works best?**
A: Works on all timeframes, but 15min-1hour is optimal for the simplified calculation.

**Q: Is this better than just support/resistance?**
A: It adds an options perspective, but should complement (not replace) standard TA.

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## 🚀 Upgrade To GEX Pro

Ready for institutional-grade analysis?

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- Real options data from 440+ tickers
- 20+ advanced metrics
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- Professional-grade analytics
- API access available

**Stop guessing. Start knowing where the institutions are positioned.**

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## 📧 Support & Contact

- **Website**: [gexpro.asiaquant.com](gexpro.asiaquant.com)
- **Questions**: Contact form on website
- **TradingView**: Leave comments on the indicator

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## ⚖️ Disclaimer

This indicator is for **educational purposes only**. It is not financial advice. Options and derivatives trading involves significant risk. Past performance does not guarantee future results. Always do your own research and consult with a financial advisor before making trading decisions.

The simplified calculations in this free version are approximations and may not reflect actual market conditions. For professional trading decisions, use verified data sources and professional-grade tools.

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**Version**: 1.0
**Last Updated**: December 2024
**Created By**: AsiaQuant Research

### 🔓 **Unlock the full power: [gexpro.asiaquant.com](gexpro.asiaquant.com)**