AI Gamma Levels - Options Flow Signals v1.1

The AI Gamma Levels - Options Flow Signals indicator tool estimates institutional options positioning by analyzing price action, volume, and technical volatility to identify key support and resistance zones.

Usage

The tool is designed to help traders visualize gamma exposure concepts using standard price data. Users can monitor three primary levels: the Gamma Flip, Call Wall, and Put Support.

• Intraday Trading: Use the Gamma Flip as a dynamic pivot point. Bounces at Put Support during positive gamma regimes (price above Flip) or rejections at Call Walls during negative gamma regimes (price below Flip) offer potential entries.
• AI Trade Signals: The script includes a confluence detector that triggers BUY or SELL signals based on regime alignment, proximity to levels, RSI extremes, and volume spikes. These signals provide automated entry, stop-loss, and target references.
• Market Regime Analysis: Background coloring indicates whether the market is in a Positive Gamma (stabilizing) or Negative Gamma (volatile) environment, allowing traders to adjust their risk appetite accordingly.

Details

This script approximates institutional positioning without requiring external options chain data. It utilizes VWAP as a proxy for the Gamma Flip and combines ATR with recent price extremes to calculate the Call Wall and Put Support.

The AI Signal logic requires a minimum confidence score (default 70%) and evaluates five specific factors:

1. Regime Alignment: Ensures the trade follows the current gamma bias.
2. Level Proximity: Validates if price is within 0.5% of a key boundary.
3. Momentum Extremes: Uses a fast RSI (9) to identify overbought/oversold conditions.
4. Volume Confirmation: Requires volume to be at least 1.4x the 20-period average.
5. Volatility Quality: Checks the bar range relative to price.

Settings

Display

• Show Gamma Flip Level: Toggles the visibility of the central neutral zone.
• Show Call Wall (Resistance): Displays the estimated upper resistance boundary.
• Show Put Support: Displays the estimated lower support boundary.
• Show Trading Zone: Enables a shaded area between the Call Wall and Put Support.

Calculation

• Lookback Period: (5-100) Adjusts the sensitivity of the level calculations.
• Volatility Multiplier: (0.5-3.0) Widens or tightens the distance of the walls from price action.

AI Signal

• Show AI Signal: Enables the high-confluence trade signal labels.
• Min AI Confidence %: (60-90) Sets the selectivity threshold for triggered signals.

FAQ

How do I access AI Gamma Levels - Options Flow Signals?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Does this use real-time options chain data?

No, this indicator uses price and volume-based approximations to estimate where institutional gamma might be concentrated for educational purposes.

What is the difference between Positive and Negative Gamma?

Positive Gamma typically occurs when price is above the Gamma Flip, where market maker hedging tends to stabilize price. Negative Gamma occurs below the Flip, where hedging can often amplify market volatility.