Educational material, not financial advice. Nothing here is a recommendation to buy or sell any security. Options involve significant risk and are not suitable for every investor. These are past examples chosen to illustrate a reading; they are not typical results, and past behavior of any setup does not guarantee future results.
DESCRIPTION
This heatmap is characterized by having multiple prominent nodes of positive and negative values, in many cases bearing a resemblance to a rainbow. Another distinct feature of this heatmap is the lack of a clear range for price to trade within, heralding choppy and erratic price action.HOW TO APPROACH
When positioning is this vague, the map offers little to lean on. Many traders treat it as a reason to stand aside until a clearer structure forms.- Example 1
- Example 2
- Example 3
