Documentation

Getting Started

Glossary

• 0DTE
  Zero Days to Expiration. Options contracts that expire on the same trading day they are traded, offering high gamma exposure and rapid time decay.
• ATR
  Average True Range. A volatility indicator that measures the average range of price movement over a given period, used to set stop losses and gauge market conditions.
• Cumulative Delta
  The running total of buying volume minus selling volume. Divergences between cumulative delta and price can signal exhaustion or hidden strength.
• Fair Value Gap
  A price imbalance created when a candle's range does not overlap with the prior candle's range, often acting as a magnet for future price action.
• Gamma Exposure (GEX)
  The aggregate gamma positioning of market makers across strikes. High positive GEX acts as a price magnet, while negative GEX amplifies moves.
• Implied Volatility
  The market's forecast of future price movement embedded in option premiums. Higher IV means more expensive options and larger expected price swings.
• Liquidity Zone
  A price area with concentrated resting orders, often near round numbers or prior highs/lows. Price tends to be attracted to and react at these levels.
• Market Structure
  The pattern of higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend). A break of structure signals a potential shift in direction.
• OHLC
  Open, High, Low, Close. The four key price points of a candlestick or bar for any given time period.
• Order Block
  A consolidation zone where institutional orders were placed before a strong impulsive move. Price often returns to these areas for re-accumulation or distribution.
• Order Flow
  The real-time analysis of buy and sell orders hitting the market. Reveals the aggression and intent behind price movement beyond what candlesticks show.
• Point of Control (POC)
  The price level with the highest traded volume in a given session or range. Acts as a fair value reference and often serves as support or resistance.
• Premium Decay
  The erosion of an option's extrinsic value over time, driven by theta. Accelerates dramatically in 0DTE contracts as expiration approaches.
• Probability of Profit (POP)
  The statistical likelihood that a trade will be profitable at expiration based on current pricing and implied volatility.
• Scalping
  A trading style focused on capturing small, rapid price movements with tight stops. Typical hold times range from seconds to a few minutes.
• Spread
  An options strategy involving simultaneous purchase and sale of contracts at different strikes or expirations. Defines max risk and max reward upfront.
• Support/Resistance
  Price levels where buying (support) or selling (resistance) pressure has historically emerged. Key reference points for entries, exits, and stop placement.
• Theta
  The rate at which an option loses value per day due to time decay, all else being equal. Theta sellers profit from this decay; buyers fight against it.
• Volume Profile
  A charting tool that displays the amount of volume traded at each price level over a specified period. Reveals where the most significant trading activity occurred.
• VWAP
  Volume Weighted Average Price. The average price weighted by volume throughout the trading day. Institutional benchmark used to gauge whether fills are favorable.