RED-E Gamma Range Detector

RED-E Gamma Range Detector
Overview
The RED-E Gamma Range Detector identifies key support and resistance zones based on recent price action and volume distribution, combined with a simple momentum ribbon to help traders visualize trend direction. It's designed to highlight potential areas where price may react, inspired by the concept of gamma exposure levels in options trading.
How It Works
1. Support & Resistance Zones (Green & Red Boxes)

RED-E analyzes the recent price range over a customizable lookback period
It identifies high-probability support levels (green boxes) below current price
It identifies high-probability resistance levels (red boxes) above current price
These zones represent areas where price has historically shown increased activity

2. Gamma Flip Level (Yellow Dashed Line)

The yellow line represents the approximate "gamma flip" - the midpoint of the recent range
Above this line: Price tends to be more stable with range-bound behavior
Below this line: Price tends to be more volatile with trending behavior
This level acts as a key pivot point for market structure

3. Momentum Ribbon (Green/Red Fill)

A simple visual indicator using 9 and 21 period EMAs
Green ribbon: 9 EMA is above 21 EMA (bullish momentum)
Red ribbon: 9 EMA is below 21 EMA (bearish momentum)
Ribbon width shows strength of trend (wider = stronger trend)

How to Use
For Range Trading:

Look for buy signals near green support zones when above gamma flip
Look for sell signals near red resistance zones when above gamma flip
Price tends to bounce between zones in stable conditions

For Trend Trading:

Watch for breakouts above resistance or below support zones
Use the momentum ribbon to confirm trend direction
Wider ribbon gaps indicate stronger directional moves

For Risk Management:

Use support/resistance zones for stop-loss placement
Recognize increased volatility potential below the gamma flip
Adjust position sizing based on your proximity to key zones

Settings

Lookback Period: Number of bars to analyze (default: 20)

Lower values = more responsive to recent price action
Higher values = more stable, longer-term levels



Best Practices

Works best on liquid instruments (major stocks, indices, forex pairs)
Combine with other technical analysis tools for confirmation
Most effective on 1H, 4H, and daily timeframes
Always use proper risk management and stop losses

Why "RED-E"?
RED-E stands for being Ready to identify critical gamma levels, support/resistance zones, and momentum shifts - keeping you prepared for market moves before they happen.
Educational Note
This indicator approximates gamma exposure concepts using price and volume analysis. It does not use actual options data. The term "gamma" refers to the rate of change in options delta and how market makers hedge their positions, which can create support/resistance at certain price levels.
Disclaimer
This indicator is for educational and informational purposes only. It does not guarantee profitable trades. Past performance is not indicative of future results. Always conduct your own analysis and manage risk appropriately. Trading involves substantial risk of loss.

Recommended Categories
Primary Category:

✅ Support and Resistance

Secondary Categories:

✅ Momentum
✅ Trend Analysis
✅ Volatility