Indicator — Gamma Blast

Gamma Blast puts the option chain's "dealer gamma" straight onto your index futures chart. It reads every strike around the money, works out how much hedging the option writers have to do as price moves, and draws the result as levels on the candles: a call wall above, a put wall below, and the zero-gamma flip in between. When the setup is right it marks an entry with a stop and a target, and it keeps a running scorecard of how those entries would have done on the history you have loaded.

The idea in plain words

Option writers (market makers, "dealers") hedge what they sell. How they hedge depends on which side of the chain carries the open interest:

• Long gamma (pinned). Dealers buy dips and sell rallies to stay hedged. Their hedging pushes price back toward the big strikes. Moves fade, ranges hold, breakouts fail.
• Short gamma (accelerating). Dealers must sell into falls and buy into rallies. Their hedging pushes price further in the direction it is already going. Moves run, and runs can turn into a "gamma blast" — a fast, one-way move, most often in the last day or two before expiry.

The indicator tells you which regime you are in, where it flips, and where the largest hedging walls sit. The entries it marks are the moments when a short gamma regime, a coiled (low) implied volatility and a surge in flow line up.

What you see on the chart

The greeks panel (right side)

The panel is an option chain for the strikes nearest the money, calls on the left and puts on the right.

• Title row — underlying, expiry and days to expiry. A loading x/y counter shows while strikes are still being fetched.
• Regime row — SHORT γ · ACCELERATING, LONG γ · PINNED or BALANCED γ, with the flip price and the two walls.
• Health row — how many strikes have both legs and real open interest. A red ⚠ thin means the chain is too one-sided to trust the regime yet. The right side shows the forward the legs were priced off (parity fwd is best, future as fwd is the chart's own price) and whether open interest arrived in quantity (OI qty) or lots (OI lots).
• Signal row — the most recent entry with its direction, agreeing strategies, score, entry, stop and target, and the time it fired.
• Chain rows — price, implied volatility, delta, gamma and open interest per leg. The ATM row is highlighted amber. Rows glow blue in proportion to their gamma × OI (the hedging weight). The strike cell is tinted green when the strike adds positive dealer gamma and red when negative. ▲ marks the call wall and ▼ the put wall.

The backtest scorecard

The small table (top-right by default) replays every signal on the loaded history, one trade at a time, entering at the signal's price on the next bar and exiting at the stop, the target or after Max Hold bars. For each strategy and for the combined markers you get:

A sparkline under the table is the equity curve of the combined markers.

How to use it, step by step

1. 1
   Open an index futures chart

   Load NIFTY or BANKNIFTY futures on a 5-minute chart (1-minute to 15-minute all work). Add Gamma Blast from the Volatility group. Let the loading counter in the panel title finish; with the default five days of history this takes a short while because every strike is fetched separately.

2. 2
   Check the health row

   Make sure the chain row is not flagged ⚠ thin and that the forward reads parity fwd or future as fwd. If it says spot + carry on a futures chart, turn Chart Is a Future on in the settings.

3. 3
   Read the regime

   LONG γ · PINNED: expect range and mean reversion. Fade moves into the walls, do not chase breakouts. SHORT γ · ACCELERATING: expect follow-through. Breakouts and breakdowns are more likely to run, especially within two days of expiry. BALANCED: no verdict, trade something else.

4. 4
   Use the walls and the flip as your map

   The call wall is resistance, the put wall is support, the flip is the line between "pin" and "accelerate". A move from a pinned regime through the flip into the short-gamma zone is the classic blast path.

5. 5
   Act on a marker only with confluence

   Treat a marker as a candidate, not an order. Prefer markers whose tag lists two or more strategies, whose score is 70 or higher, and whose direction agrees with the regime (longs above the flip in long gamma are fades; longs that break above the flip in short gamma are momentum). The signal row gives you the entry, stop and target — the stop sits just past the flip or the opposite wall, the target is the wall ahead.

6. 6
   Check the scorecard before trusting a strategy

   If a strategy's ExpR is negative on your symbol and timeframe, switch it off under Strategies. The scorecard is computed on the bars you have loaded, so raise Days To Load for a bigger sample.

7. 7
   Replay to learn the levels

   In replay mode, or by clicking a candle, the whole chain is rebuilt as of that bar. Past markers never change as you step forward — the scoring is strictly causal — so what you see in replay is what you would have seen live.

The five strategies

Each strategy fires its own raw signals. The markers you see are the consolidated result: at each bar the agreeing strategies are summed per direction, the stronger side wins, and a marker is drawn only when the Min Signal Score is met and the Signal Cooldown has elapsed.

Settings

Open Indicators, click the Gamma Blast entry under Added, and use the Settings pane.

Option Chain

Black-Scholes

Display and Strategies

Loading

Good habits

• Thin chain, no trade. If the health row is red, the walls and the regime are built on half a chain. Wait for the load to finish or widen the strike count.
• Expiry day is different. Gamma is largest, the blast score ramps up, and the levels move quickly as open interest changes. Keep the cooldown and the score floor up rather than down.
• The walls move. They are the largest open interest right now. A wall that is being built through the day (OI rising, green in the table) is stronger than one being unwound (red).
• Scores are relative, not probabilities. A 90 is a cleaner setup than a 65, not a 90% chance of success. Let the scorecard tell you what a score is worth on your symbol.
• It is one input. Combine it with your footprint, volume profile or market structure read. The indicator tells you where the hedging is, not whether the next candle is up.