SPY Daily Gamma Levels [Manual Input With Alerts]

The SPY Daily Gamma Levels [Manual Input With Alerts] tool provides traders with a visual representation of key options-based support and resistance levels, such as the Call Wall, Gamma Flip, Put Support, and Volatility Trigger, directly on the chart. By identifying where market makers are positioned, this script aims to highlight areas that often act as magnets or repellents for price action, aiding in trend identification and risk management.

Usage

The script is designed for traders who utilize Gamma Exposure (GEX) data to navigate the market. Users must manually input the four primary levels each morning based on external options data.

• Call Wall: Typically acts as a major resistance level where upside momentum may stall.
• Gamma Flip (Zero Gamma): Serves as a critical pivot point. Trading above this level often suggests a stable market environment where dealers buy dips. Trading below it can lead to expanded volatility as dealers sell into price drops.
• Put Support: Represents a significant floor where buying interest often emerges.
• Volatility Trigger: Known as the "Danger Zone"; falling below this level often results in accelerated selling pressure.

For execution, the 15-minute timeframe is recommended for trend identification, while the 5-minute chart is useful for timing entries around these levels. Built-in alerts trigger when the price crosses any of the four defined zones.

Details

This script addresses the current limitation in Pine Script regarding native access to external options open interest data by providing a manual entry framework. The indicator utilizes the barstate.islast logic to draw horizontal lines that extend across the current session, ensuring a clean chart by automatically removing historical projections.

The calculations for these levels are based on dealer gamma exposure models. When price is above the Gamma Flip, the "Positive Gamma" regime generally suppresses volatility. Conversely, the "Negative Gamma" regime below the flip point can lead to "vanna-hedging" activities that exacerbate price moves.

Settings

Daily Levels

• Call Wall (Resistance): The price level representing the highest concentration of call gamma.
• Gamma Flip (Pivot): The price level where the aggregate market gamma transitions from positive to negative.
• Put Support: The price level representing the highest concentration of put gamma.
• Vol Trigger (Bearish): The price level that, if breached, indicates a significant increase in expected volatility.

Visuals

• Level Colors: Individual color pickers for the Call Wall, Gamma Flip, Put Support, and Vol Trigger.
• Line Width: Adjusts the thickness of the plotted horizontal levels.
• Line Style: Choose between solid, dashed, or dotted lines for the level projections.

FAQ

How do I update the data for the SPY Daily Gamma Levels [Manual Input With Alerts]?

Since TradingView cannot fetch options data natively, you must manually update the price levels in the indicator settings each morning before the market opens using data from your preferred options flow provider or AI research tool.

What happens when the price crosses a level?

The indicator is equipped with alert conditions. If set, you will receive a notification when the price crosses the Gamma Flip, Vol Trigger, Call Wall, or Put Support, allowing you to react to shifts in market regime.

How can I access this indicator?

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