In this article you will learn how to set up the Menthor Q Indicators Quantower Integration. You can now access Gamma Levels and Blind Spots Levels on the platform. You can now integrate the MenthorQ data into Quantower directly via API.
What is Quantower?
Quantower is a comprehensive, multi-asset trading platform designed to cater to both novice and professional traders. It offers a wide array of analytical and trading tools, supporting various asset classes such as equities, futures, options, ETFs, and Forex. Check out the Website.
How to integrate MenthorQ Levels on Quantower
Integrating the MenthorQ Levels into Quantower is very simple. To do so follow these Steps:
Log into your Account Dashboard and go under Integration. Locate the Quantower section and download the indicator.
Paste the indicator in the following folder within your computer: C:\Quantower\Settings\Scripts\Indicators
Fill up the Activation Form. You will be need to confirm your Machine ID
Check out the Video Tutorial.
Configure the Indicator on Quantower
Once downloaded the indicator go into your Quantower Indicator List and look for the MenthorQ Levels Indicator.
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Step 1. Add your API Key
Scroll down the Indicator Settings and add your API Key. You can retrieve the API Key within the MenthorQ Account Dashboard.
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Step 2. Choose Level Type
You can select what types of Levels you want in your chart and the Gamma Model. You can add Gamma Levels, Swing Levels (when available) and Blind Spots Levels.
For Gamma Levels we have 2 Models:
Gamma Levels. Those are the main MenthorQ Gamma Levels.
Gamma Scalping. This model allows you to access more gamma levels within a smallare range. Tailored for Futures Traders who are looking at tight areas for scalping.
In this article you will learn how to set up the Menthor Q Indicators for Thinkorswim (TOS). You can now access Gamma Levels and Blind Spots Levels on the platform.
What is Thinkorswim (TOS)?
Thinkorswim is a top-rated trading platform trusted by traders worldwide. Known for its comprehensive tools and user-friendly interface, Thinkorswim is consistently recognized as an industry leader in the trading community. Featuring advanced analytics, customizable charting, and seamless order execution, its integration capabilities allow access to cutting-edge tools like Menthor Q’s actionable insights for enhanced market analysis.
How to integrate MenthorQ Levels on Thinkorswim
Here is how to set up the Thinkorswim indicators on your platform:
Step 1. Download the Indicators
Once you join the Premium Membership you will have access to your Account Dashboard and you can find the Thinkorswim section under the Integration tab.
Step 2. Click on Studies and Edit Studies
Click on the Studies – Edit Studies and once the window opens click on Import.
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Then select the Custom Study you downloaded from the MenthorQ website.
Step 3. Add the Study to the Chart
Once you import it the study will be available on the left side under studies just search for the name and double click it will be loaded into the chart.
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Step 4. Indicato on the Chart
Now once you click apply your indicator will be in the chart.
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Step 5. Customize the Settings
To customize the Settings click on Edit Studies and go into the indicator settings. You can customize the Value of the levels, the color of the lines and format and more.
Due to TOS Limitations you would need to manually change the values of the levels you want to plot on your chart from the settings section.
In this guide we will show how to use the MenthorQ Data for your morning preparation. It takes only a few minutes.
1. Liquidity Snapshot
You can access the Liquidity Snapshot by typing the /liq_snapshot command on the Query Bot. Within this screen we particularly monitor the following data points:
Negative Gammaindicates potential for sharp price swings.
Negative GEX: Dealers hedge into trend, regardless of direction = Removes liquidity
Positive GEX: Dealers hedge against trend, regardless of direction = Adds liquidity
Bullish Momentum signals upward price movement.
IV30 vs HV30: Implied volatility is lower than historical volatility, which suggests the market may be calming down after a period of higher actual volatility. This combination can influence both directional and volatility-based trading strategies.
The Put/Call Open Interest Ratio compares the number of open put options to call options. A ratio of 2.56 suggests that there are more put options being traded compared to calls, which might indicate a bearish outlook from option traders, despite the bullish momentum.
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2. Option Matrix
Next we will look at the Option Matrix. The Matrix simplifies the read of the Option Chain for any assets within our coverage. You can access the Matrix using the command /matrix in the Query Bot.
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When GEX is positive, expect a more stable market with limited price swings. It’s often a signal that mean reversion trades (buying dips, selling rallies) could be effective.
When GEX is negative, expect more volatile markets with larger price swings. In this case, you might look for momentum trades, riding trends rather than fading them.
When DEX is positive, expect potential upward pressure on the market. If you’re seeing strong support levels and rising prices, it could be a sign to enter long positions, especially if you’re riding the momentum.
When DEX is negative, expect downward pressure. In this case, you might want to be cautious with long positions or look for opportunities to short if the market shows signs of weakening.
High Positive GEX + Positive DEX: Indicates a potentially bullish environment with stable upward pressure. You can look for long setups, especially if the market shows resilience on pullbacks.
Negative GEX + Negative DEX: Indicates a potentially bearish and volatile market. Here, you might look for short setups or be cautious about long trades.
Mixed GEX and DEX (e.g., positive GEX with negative DEX): This could indicate a choppy market, where the price might be stuck in a range or show unexpected volatility. In this scenario, shorter-term trades with tighter stops might be necessary.
Expiry Exp. Move. This column leverages our Option Implied Move Model to forecast how many points up or below the price can move by the expiration date.
3. Net Gamma Exposure (Net GEX)
Next we will look at the Net Gamma Exposure Chartor Net GEX. You can access the chart by using the /netgex command.
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This is how we can use this chart:
Predicting Volatility: The chart helps traders identify where market makers’ hedging activity may stabilize or destabilize the market. For example, heavy negative GEX at lower strike prices indicates higher volatility if the price starts to drop.
Support and Resistance: The GEX distribution gives clues to important support and resistance levels (e.g., $540 put support and $570 call resistance). Traders can use this information to make decisions about where to enter or exit positions.
Volatility Zones (HVL): The High Vol Level($550) marks a zone where price swings could become more unpredictable, which is critical for risk management.
On top of the Net GEX Chart we can also analyze Net Gamma Exposure across multiple Expirations. This is very important as we can monitor 0DTE Options Flows and Reaction Zones. You can access this chart by using the /netgex_multiexpiry command on the Query Bot.
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This is how we can use this chart:
Anticipating Price Reactions: By studying GEX across different expirations, traders can anticipate how the asset might react at certain strike prices during different trading sessions. This is especially useful near major expiration dates or Mopex (monthly expiration).
Volatility Management: Knowing where negative GEX clusters are across multiple expirations helps traders avoid-or take advantage of-potential spikes in volatility.
Enhanced Strategy Development: This multi-expiration GEX data enables traders to layer their trades around multiple key levels and expiration dates, improving the precision of their strategies.
5. Swing Trading Model
Then we want to look at our Swing Trading Model. We have two time horizons: 5 days and 20 days. You can access it by using the commands: /swing_5d and /swing_20d. You can also add the Swing Levels to TradingView.
Predicts Key Levels for Entries and Exits: The upper band, lower band, and risk trigger provide clear price targets that day traders can use to set entry, exit, and stop levels.
Upper Band: The upper band gives day traders a target for price resistance. If SPY nears this level, it may encounter selling pressure, and traders might look to take profits or initiate short positions.
Lower Band: (Not visible on this portion of the chart but typically shows as a lower boundary) The lower band is the opposite of the upper band and acts as a support level. Traders could use it as a potential buy signal or target for covering short positions, expecting a bounce.
Risk Trigger: This level indicates a key price point where the model expects an important reaction, either as a support or potential breakdown level. Day traders can use this as a decision point, either to tighten stops or prepare for larger moves.
6. Gamma Levels on VIX
After looking at our asset we want to confirm our analysis by looking at the VIX Index. In particular we can look at the VIX Matrix.
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Understanding GEX and DEX for VIX options helps traders predict upcoming volatility spikes or calming periods. For example, if GEX is negative and DEX is high, traders can expect heightened volatility, which can influence decisions in both options and futures markets.
The VIX is a direct reflection of market fear and uncertainty. By observing the call resistance and put support levels, traders can get a sense of how much fear (or calm) the market is pricing in at different VIX levels.
Large GEX and DEX values suggest that institutional players are making significant hedging moves, which can influence both VIX options and the broader market. Traders can use this information to manage their positions effectively, particularly during major market-moving events.
The chart gives a granular view of volatility expectations across multiple expirations, helping traders position for both short-term swings and long-term trends in market volatility.
7. CTAs and Systematic Models
The last step is to look at the MenthorQ CTAs Funds Model. Systematic Funds and CTAs are key drivers of liquidity and monitoring their flows is key for any investors. With this model we simplify how you can analyze their liquidity and positioning.
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This is how we can read the chart:
CTA Position Today, Yesterday, and 1 Month Ago: These columns show how much CTAs are currently positioned in each index, today, how much they were positioned yesterday, and one month ago. This helps traders and analysts track the evolution of CTA positions over time. For example, in the E-Mini S&P 500 Index, there was a slight decrease in the position from yesterday to today, but the position has increased significantly from one month ago. This shows that CAs have been building a long position, potentially influencing upward market moves.
Percentile (1M, 3М, 1Y): These columns indicate how current CTA positions compare to historical positions over 1 month, 3 months, and 1 year. Percentiles show how extreme the current positions are compared to historical data. For example, the E-Mini S&P 500 Index has a 1M percentile of 0.29, meaning the current position is in the 29th percentile over the last month, which suggests it is a relatively moderate position. Higher percentiles indicate more extreme positioning, which can precede large price moves if CTAs start reversing positions.
3M Z Score: The Z score tells us how far the current position is from the mean position over the last three months. A high or low Z score can indicate overbought or oversold conditions. For instance, the E-Mini S&P 500 Index has a Z score of -1.30, indicating that the current CTA position is significantly lower than the 3-month average, suggesting that the index might be oversold and could see buying pressure if CTAs reverse positions.
In the fast-paced world of trading, it’s easy to fall into the trap of overanalyzing every move, every chart, and every piece of news. However, true mastery in trading comes not from overanalyzing, but from clarity, decisive action, and a mindset focused on overcoming daily setbacks. Here’s how you can simplify your approach, stay focused, and tackle the inevitable challenges that come your way. Author: @daytraderpat
1. Simplify Your Strategy:
Trading strategies don’t need to be overly complex to be effective. Strip your strategy down to the basics—what works consistently, without the noise. Trust your go-to setups and avoid the temptation to tweak every little detail. Remember, simplicity often leads to clarity and better decision-making.
2. Avoid Information Overload:
The more information you try to process, the more likely you are to second-guess yourself. Limit your sources to what’s most relevant to your trading plan. Focus on the essentials—price action, key levels, and maybe one or two reliable indicators. The rest is just noise.
3. Trade with Conviction:
Once you’ve identified a trade, execute with conviction. Hesitation can be costly. Trust your preparation and your trading plan, and avoid the paralysis that comes with overthinking. Not every trade will be a winner, but decisive action is better than missing out due to indecision.
Facing Daily Setbacks: The Real Test of a Trader
1. Embrace Losses as Lessons:
Losses are a natural part of trading. Instead of dwelling on them, use them as opportunities to learn. Ask yourself what went wrong, but don’t overanalyze it to the point of inaction. Learn the lesson, adjust if necessary, and move on.
2. Manage Your Emotions:
Trading is an emotional game. When faced with a setback, it’s easy to get caught up in frustration or fear. Recognize these emotions, but don’t let them dictate your next move. Staying calm and sticking to your plan is crucial, especially after a tough loss.
3. Don’t Chase the Market:
After a setback, the urge to “make it back” can lead to impulsive decisions. This is often a trap. Instead of chasing the market, step back, reassess, and wait for the next clear opportunity. Trading is a marathon, not a sprint—consistency over time is what counts.
4. Focus on Execution, Not Perfection:
No trade is perfect, and not every trade will go your way. Focus on executing your plan consistently rather than trying to time the market perfectly. The goal is steady, incremental gains, not hitting home runs on every trade.
Keep It Simple, Keep It Consistent
1. Stick to Your Plan:
Your trading plan is your roadmap. Stick to it, even when the market throws curveballs your way. Avoid making changes on the fly unless the market conditions fundamentally shift. Consistency in execution will yield better results over time.
2. Daily Routines:
Establish a daily routine that prepares you mentally and emotionally for trading. Whether it’s a morning review of key levels or a post-trade debrief, these routines help reinforce discipline and keep you grounded, no matter what the market does.
3. Avoid Overtrading:
Less is often more in trading. Overtrading can lead to mistakes, increased costs, and emotional burnout. Focus on quality over quantity—wait for the setups that fit your criteria, and don’t feel pressured to trade just for the sake of it.
The Final Word: Clarity Over Complexity
Trading doesn’t have to be complicated. By simplifying your approach, managing your emotions, and focusing on consistent execution, you can navigate the daily setbacks that every trader faces. Remember, the goal is not to analyze every detail, but to make clear, confident decisions based on a well-defined strategy.
In the end, success in trading comes from clarity of purpose, simplicity in action, and the ability to bounce back from setbacks with resilience and focus. Keep it simple, stay consistent, and let the markets work for you.
In this Guide we will go through 0DTE Options Trading Strategies. The key to success lies in understanding and managing the inherent volatility of these instruments. Unlike traditional options, which might have weeks or months before expiration, 0DTE options are set to expire on the same day they are traded.
This creates a unique set of circumstances where the option’s value is primarily driven by the price movements of the underlying asset, with almost no time value left.
Volatility plays a significant role in 0DTE options trading. As these options have no remaining time value, they become extremely sensitive to changes in the underlying asset’s price.
A small move in the underlying asset can result in a large percentage change in the option’s price, making 0DTE options highly attractive for traders looking to capitalize on short-term market movements. However, this high sensitivity also means that 0DTE options can be quite unpredictable, requiring traders to adopt a structured and disciplined approach.
Key Strategies for Trading 0DTE Options
To navigate the volatility of 0DTE options effectively, traders must employ a combination of strategy, risk management, and the right tools. Here are some key strategies that can help traders maximize their success when trading 0DTE options.
1. Scalping and Day Trading
Given the extremely short timeframe of 0DTE options, scalping and day trading are popular strategies. These approaches involve making quick trades to capture small price movements throughout the day.
Since 0DTE options are highly responsive to changes in the underlying asset’s price, scalping allows traders to take advantage of these rapid shifts. However, this strategy requires a keen eye on the market and the ability to take quick decisions.
2. Selling Credit Spreads
Another effective strategy for 0DTE options is selling credit spreads. This involves selling an option and simultaneously buying another option with the same expiration date but a different strike price. The goal is to collect the premium from the sold option while limiting potential losses with the purchased option.
Selling credit spreads is particularly useful in a high-volatility environment, as it allows traders to benefit from the rapid time decay of the sold option while managing their risk exposure.
3. Iron Condors
Iron Condors are a more advanced strategy that involves selling a put spread and a call spread with the same expiration date, but different strike prices. This strategy is well-suited for 0DTE options because it allows traders to profit from a range-bound market, where the underlying asset’s price stays within the expected range.
The iron condor strategy benefits from time decay, which is accelerated in the final hours of trading, making it an attractive option for traders who anticipate low volatility near expiration.
4. Hedging with Futures or ETFs
Hedging is an essential component of any trading strategy, especially when dealing with the high volatility of 0DTE options. Traders can hedge their positions by using futures contracts or ETFs (Exchange-Traded Funds) that track the underlying asset.
For example, if you’re trading 0DTE options on the S&P 500, you could use the SPY ETF or ES Future to hedge against adverse price movements. This approach helps protect your capital while still allowing you to participate in the potential upside of 0DTE options.
MenthorQ Tools for 0DTE Traders
At MenthorQ, we understand the complexities of trading 0DTE options, which is why we provide a suite of tools designed to help you navigate this volatile environment.
Our platform offers advanced models, allowing you to track key indicators such as gamma levels, skew, and term structure for 0DTEs Options.
1. Tracking Gamma Levels
Gamma is a measure of the rate of change in an option’s delta, which represents the sensitivity of the option’s price to the underlying asset’s price. 0DTE options have high gamma, meaning their price can become very reactive to small changes in the underlying asset’s price.
You can access our Primary and Secondary Levels as well as our 0DTE Levels. You can then monitor our 1D Expected Move Indicator that can provide insights on the daily expected volatility of the asset.
Skew refers to the difference in implied volatility between options at different strike prices. By analyzing the skew, you can gauge market sentiment and identify whether traders are paying a premium for puts or calls as the expiration approaches. This insight can be invaluable for setting up trades that take advantage of market biases or mispricings. Read more about the MenthorQ Skew.
We offer 3 types of Skew: 0DTE Skew, 1 Month Skew and 3 Months Skew.
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3. Understanding Term Structure
The term structure of options volatility provides a view of how implied volatility is distributed across different expiration dates. For 0DTE traders, focusing on the term structure helps in understanding the market’s expectations for volatility on the expiration day. Our tools at MenthorQ allow you to analyze this structure and make informed decisions about whether to hold or sell your 0DTE options. Learn More about Term Structure.
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Combining Strategy, Risk Management, and Tools
Successfully trading 0DTE options requires more than just understanding the underlying mechanics; it demands a disciplined approach that combines strategy, risk management, and the right tools. By integrating these elements, you can better navigate the volatile nature of 0DTE options and increase your chances of achieving consistent, profitable trades.
At MenthorQ, we are committed to provide traders with the resources they need to succeed in this dynamic trading environment. Our platform provides the data, insights, and tools necessary to refine your strategies and improve your trading outcomes.
Understanding the concept of Gamma is crucial, especially when dealing with Zero Days to Expiration (0DTE) options. Gamma is a second-order Greek that measures the rate of change in an option’s delta relative to movements in the underlying asset’s price.
For 0DTE options, gamma levels are particularly significant because these options are highly sensitive to even the smallest changes in the underlying asset’s price. As the expiration approaches, gamma tends to increase, meaning that the delta can change rapidly.
This makes 0DTE options extremely reactive and, therefore, both an opportunity and a risk for traders. A high gamma level indicates that an option’s price can swing dramatically with small price movements in the underlying asset, which can result in substantial gains—or losses—within a very short time frame.
How to use MenthorQ 0DTE Gamma Levels and Net GEX
Tracking gamma levels is crucial for anticipating significant price movements and managing risk effectively.
Net GEX Analysis: Our Net GEX chart provides insight into the short-term sentiment within the options chain. Green indicates a higher presence of call gamma, while red signifies more put gamma. This tool acts as an early warning system, helping you anticipate potential market shifts. Watch our Podcast on Gamma Levels and Net Gamma Exposure
Identifying Reaction Zones: Use our tools to monitor the distance between the current spot price and significant reaction zones. Understanding these zones can help you make more informed trading decisions. Learn About Reaction Zones
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Net Gamma Exposure (Net GEX) and Market Sentiment
Net GEX is a proprietary metric that shows the net exposure of gamma in the market.
A positive Net GEX value indicates that call gamma dominates, which often suggests bullish sentiment.
A negative Net GEX value signals that put gamma is more prevalent, pointing to bearish sentiment.
By tracking Net GEX, traders can understand market expectations and adjust their positions accordingly.
We also provide Gamma Exposure Levels on 0DTE, Weekly and Monthly Expirations. You can access this data in one single chart grid.
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Bot Commands: To access this charts you can use the /netgex or /netgex_multiexpiry command
Market Reaction Zones
Another crucial aspect of tracking gamma levels is identifying reaction zones—price levels where the underlying asset is likely to experience significant movement due to concentrated options activity.
At MenthorQ, we provide tools that help traders pinpoint these reaction zones, allowing for more precise entry and exit points. Reaction zones can serve as early warning signals for potential price reversals or accelerations, helping traders to position themselves advantageously.
Analyzing Open Interest and Volume
Open Interest and Volume are critical metrics for understanding the dynamics of 0DTE (Zero Days to Expiration) options trading. Open Interest represents the total number of outstanding options contracts that have not been settled, providing insight into the liquidity and activity levels of specific options.
High Open Interest in 0DTE options can indicate significant market interest and potential for substantial price movement as traders adjust positions rapidly throughout the trading day.
Volume, on the other hand, reflects the number of contracts traded within a given period. For 0DTE options, high volume signals active trading and can lead to increased volatility, as these contracts are highly sensitive to market movements.
Together, Open Interest and Volume offer valuable information about market sentiment, potential price action, and the underlying forces driving short-term options trading.
We provide different charts for Open Interest and Volume within the Membership. These are the Bot Commands:
/voloi – provided the Volume and Open Interest data for All Expirations
/voloi_0dte – provides the Volume and Open Interest data for 0DTE Expiration
/voloi_1dte – provides the Volume and Open Interest data for the next Expiration
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What Is the 1D Expected Move Indicator?
This tool forecasts the next day’s price movement by analyzing implied volatility, providing a projected trading range that is invaluable for intraday trading and risk management. Learn More.
How to Use the 1D Expected Move Indicator Daily Trading Band: Use the projected price range to identify key support and resistance levels for the trading day, guiding your 0DTE strategies.
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Learn How to Use the 1D Expected Move Indicator. Watch Now
Bactesting Results of 1D Expected Move Indicator. Learn More
Bot Commands: /keylevels
Positive and Negative Gamma
It is very important for Traders and Investors to understand the difference between Positive and Negative Gamma when trading any asset, because these gamma conditions can significantly impact their investment strategies and risk exposure.
In Positive Gamma the Market is Long Gamma and we can expect lower volatility
In Negative Gamma the Market is Short Gamma and we can expect higher volatility
We can use the Option Matrix to identify whether the market is in a positive or negative gamma environment, helping you gauge potential price stability or volatility based on the aggregated positioning of options traders.
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Watch our use cases videos:
How to prepare for a Market Sell Off and Increased Volatility.Watch Now
Skew refers to the difference in implied volatility (IV) between options at different strike prices. In 0DTE trading, skew analysis helps you gauge market sentiment and identify potential trading opportunities.
In a perfectly balanced market, the Implied Volatility across different strikes would be similar. However, in reality, this is rarely the case. Skew occurs when there is a noticeable difference in Implied Vol, indicating that traders are willing to pay more for options on one side of the market—either puts or calls—based on their expectations of future price movements.
For 0DTE options, skew becomes an even more critical factor. As the expiration date approaches, any existing skew can intensify, leading to significant price disparities between options with different strike prices.
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How to Analyze Skew with MenthorQ
Market Sentiment: Use skew analysis to understand whether traders are leaning towards calls or puts as expiration approaches, providing insight into market expectations. Watch Video
Strategy Optimization: Identify and capitalize on overpriced options using strategies like iron condors.
