Options & Leveraged Shares Heatmap

How it works

The indicator pulls daily Put-To-Call Ratio (PTCR) data for multiple tickers, displaying current and previous day values with their respective changes. It calculates a sell-to-buy ratio for both options and leveraged shares, presenting the information in a color-coded heatmap format that visually represents market positioning.

Traders can view the data in two primary modes: max and min display or heatmap view. The max and min display highlights the most significant positive and negative changes, while the heatmap uses color intensity to show the magnitude of shifts in trading volumes and options positioning.

Why it may be useful

This signal provides critical insights into market sentiment and potential directional shifts by tracking options and leveraged share trading dynamics. By revealing the underlying positioning of traders through PTCR and sell-to-buy ratios, it offers a unique perspective on potential market movements that might not be immediately apparent from price action alone.

The color-coded visualization allows traders to quickly assess market sentiment, identifying bullish or bearish tendencies across multiple tickers. This rapid comprehension of market positioning can help traders make more informed decisions about potential trend reversals or continued momentum.

When to explore it

The indicator is most effective for traders seeking to understand market sentiment at the end of each trading day and anticipate potential positioning for the following day. It is particularly useful for short-term traders who want to gauge overall market psychology and potential trend shifts across multiple securities.

Traders should use this signal as a complementary tool alongside other technical and fundamental analysis methods. It is especially valuable during periods of market uncertainty or when looking to identify potential divergences between price action and underlying trading volume and options positioning.

Keep exploring