Option Market Maker Sentiment shows the market maker regime, direction and volatility on your chart. It is calculated by DeepChart from options data, so you can read the gamma regime and directional bias without opening a separate panel.

Note: Option Market Maker Sentiment uses CBOE data and shows values on SPX charts only.

How to Add Option Market Maker Sentiment

1. Open an SPX chart in DeepGamma Web

2. Click Indicators in the Menu Bar

3. Click the green Add indicator button at the bottom of the panel

4. Open the Options (Cboe) tab and search for Option Market Maker Sentiment

5. The indicator is added to your chart and appears in the Indicators panel

   

You can also turn it on or off from M.M. Sentiment in the Settings quick bar.

Understanding the Indicator

The indicator has three parts, and you can set up each one on its own.

• Regime - Shows whether the market is in a positive or negative gamma regime, similar to what you see in Option Summary. Positive is teal and negative is salmon by default

• Direction - Shows a directional bias alongside the regime. There are four states: Up, Up strong, Down and Down strong. For example, a negative regime with a Down direction means the market is more likely to move down than up

• Volatility strip - A bar that appears only under certain conditions. When it appears, a higher than usual range between the high and low of the day may be expected. It does not appear every day, and on some days it shows only for part of the session

Regime is always calculated, but DeepChart only marks it when it matters. That is why the display can be blank at times, with no regime and no direction shown. Regime and Direction can each be turned off with Disabled, so you can show only the parts you want.

When Regime and Direction are set to Strip, the strips appear at the bottom of the chart in this order:

1. Volatility strip - the first line

2. Direction strip - the second line

3. Regime strip - the third line

Settings

Regime

• Mode - Choose how the regime is displayed. Options available:

  • Disabled - Hides the regime

  • Strip (default) - Shows the regime as a strip on the chart

  • Background - Colors the chart background with the same positive and negative colors, so the whole chart is tinted by the current regime

• Positive color - Set the color for a positive regime. Default is teal

• Negative color - Set the color for a negative regime. Default is salmon

Direction

• Mode - Choose how the direction is displayed. Options available:

  • Disabled - Hides the direction

  • Strip (default) - Shows the direction as a strip on the chart

  • Background - Colors the chart background with the same up and down colors, so the whole chart is tinted by the current direction

• Up - Set the color for an upward direction. Default is green

• Up strong - Set the color for a strong upward direction. Default is dark green

• Down - Set the color for a downward direction. Default is purple

• Down strong - Set the color for a strong downward direction. Default is dark purple

• Color price bars - When enabled, the price bars on your chart take the direction color. Default is disabled

Volatility strip

• Enabled - Show or hide the volatility bar. Default is enabled

• Color - Set the color of the volatility bar. Default is light gray-blue

Plot Settings

• Strip height (px) - Set the height of the strips in pixels. Default is 12

• Extend to far right - When enabled, the strips extend to the far right of the chart. Default is enabled

• Background opacity - Set how transparent the background tint is when Regime or Direction is in Background mode. Default is 10

Example - How to Use Option Market Maker Sentiment

• Check the regime and direction at the start of your session for context on how the session may behave

• Watch the strips during the session. When a color changes, the market conditions may have changed

• Read regime and direction side by side, since each one shows a different part of the conditions

• When the volatility bar appears, allow for a wider range than usual in your planning

• Turn on Color price bars in the Direction settings if you want to see the direction color on your price bars

• Set Regime or Direction to Background if you prefer the whole chart tinted instead of a strip

• Use it as context alongside other tools such as Option Levels Advanced or Option Gex Profile, and confirm what the market is doing with order flow. It is a reading of conditions and does not guarantee where price will go

  

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