How to read and use Heatseeker

🔍 How to Read and Use Heatseeker™

Heatseeker™ was engineered to visualize dealer positioning at each strike price for an underlying asset. Each node acts as a magnet, influencing price behavior as support or resistance depending on its location relative to price.

To simplify your approach, here’s a 5-step framework to interpret and trade with Heatseeker™ effectively.

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🧭 Step 1: Identify the Magnets

Every node on the Heatmap acts like a magnet, exerting a pull or push on price.

• Larger node values = stronger magnets.

• The closer price drifts, the stronger the pull becomes.

• Mark horizontal lines at key nodes on your chart to prepare for potential deflections.

💡 Focus only on the most significant nodes — cluttering your chart with too many can obscure clarity.

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👑 Step 2: Spot the King Node

The King Node is the most influential node on the map — where Market Makers typically prefer to settle price by the end of day (EOD) or end of week (EOW) for swing trades.

🎯 How to Use It:

• Treat it as your primary destination target for the session.

• Mark it clearly on your chart as your EOD or EOW anchor.

• Watch for early-day drive-offs or late-day pinning near this level.

⚠️ Price can often reject within a few points of the King Node — precision to the cent is not required.

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🧱 Step 3: Define the Range

Ranges provide some of the highest-probability setups and best risk-to-reward ratios.

• Identify where price consistently reverses on the heatmap — these define the upper and lower boundaries.

• When price approaches the extreme end of a range, look to fade the edge rather than chase momentum.

• Avoid trading near midpoints, where risk-to-reward is poor and direction is uncertain.

✅ Edge fading offers asymmetric risk-to-reward. ❌ Midpoint trading offers symmetry — and symmetry kills edge.

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🚪 Step 4: Watch Gatekeeper Nodes

Gatekeeper Nodes are defensive levels that often block price from reaching the King Node. They tend to act as strong rejection zones, and failed tests at these levels can trigger trend shifts.

🔍 How to Read Them:

• When price rejects at a Gatekeeper Node, expect potential map reshuffling or directional change.

• Early-day rejections often mark powerful reversals.

• Align your read across SPX, SPY, and QQQ — confluence greatly increases probability.

• Mixed signals between indices lower confidence.

⚡ Rule of thumb: SPX, SPY, and QQQ must agree — if one diverges, stand aside.

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🔄 Step 5: Map the Flow

Heatseeker™ updates dynamically as dealer positioning shifts throughout the day. Each reshuffle represents a change in Market Maker risk and can reshape your trading bias.

🧠 Watch for:

• Accumulation: Dealers building positions → stronger magnet zones.

• Dissipation: Dealers closing positions → weakening nodes.

• Reshuffling: Rapid changes in exposure → new structure forming.

By playing direct deflections off key nodes, you’re essentially trading ahead of the reshuffle, not after it.

💥 Staying in sync with the map flow keeps you on the same side as dealer intent — not retail emotion.

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🧩 Summary

Step	Focus	Goal
1️⃣ Identify Magnets	Major nodes	Prepare deflection levels
2️⃣ Spot King Node	Dealer settlement target	Set end-of-session bias
3️⃣ Define Range	Range extremes	Fade edges, avoid midpoint
4️⃣ Watch Gatekeepers	Rejection zones	Detect early reversals
5️⃣ Map the Flow	Dealer shifts	Adapt to reshuffles

⚙️ Master these five steps and you’ll move from reacting to price to anticipating where it’s headed.