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Platform Documentation

Institutional-grade metrics for option chain microstructure analysis and quantitative trading intelligence

Welcome to OCA PRO

OCA PRO provides professional traders with real-time option chain analytics derived from order flow physics, gamma exposure modeling, and market microstructure theory. This documentation explains the core metrics powering institutional-grade trading decisions.

⚠️ Spot-Flow Divergence

Divergence occurs when price movement contradicts underlying order flow, revealing institutional positioning before trend reversals materialize. This is one of the most powerful leading indicators in market microstructure analysis.

Bearish Divergence

Spot price makes higher highs while Flow EWMA makes lower highs or turns negative. This signals that buying momentum is exhausted despite rising prices—institutions are distributing into retail demand.

Warning Signal:

Price reaches new peak but aggressive buying volume declines. Market Makers are selling into strength. High probability of reversal or consolidation.

Bullish Divergence

Spot price makes lower lows while Flow EWMA makes higher lows or turns positive. Despite falling prices, institutional accumulation is occurring—smart money is absorbing supply.

Opportunity Signal:

Price hits new low but aggressive selling volume diminishes. Institutional buyers are absorbing panic selling. High probability of bottom formation and reversal.

Trading Strategy

Divergence reveals lack of conviction in the current price move. When cumulative delta (order flow) diverges from price, it indicates the trend is weakening and institutional participants are positioning for reversal. Wait for confirmation signals (support/resistance breaks, regime change) before entry.

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Flow Strength EWMA

Measures kinetic energy in the order book by applying a recursive temporal filter to extract the true signal of capital commitment, representing the integral of buying pressure overcoming selling pressure over time.

Mechanism

A decay factor (α) is applied to net aggressor flow (Aggressive Buys - Aggressive Sells). This prioritizes recent "new money" while maintaining trend memory, smoothing HFT noise to reveal institutional intent.

Actionable Intelligence

  • Positive (>0): Sustained accumulation. Buying dips is statistically favored.
  • Negative (<0): Sustained distribution. Rallies are likely liquidity traps.
  • Zero Cross: Structural trend reversal signal.
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Flow Strength ROC (5m)

If EWMA is velocity, ROC is acceleration. It measures the second derivative of market intent, detecting urgency and panic among participants before materializing in price action.

Mechanism

Calculates rate of change of smoothed flow over a rolling 300-second (5-minute) window, quantifying the "snap" or urgency of money entering the market.

Actionable Intelligence

  • High Positive: Buyers panicking/chasing. Often precedes gamma squeeze or breakout.
  • Near Zero: Constant flow. Price drifts without explosive power.
  • Divergence: If price makes new high but ROC declines, move is running out of fuel.
γ

Total Gamma Exposure (GEX)

Quantifies market viscosity, predicting hedging reflexivity of Market Makers who maintain delta-neutrality. Determines whether volatility will be suppressed or amplified.

Mechanism

Positive GEX: Dealers are Long Gamma—they buy dips and sell rips, creating a "thick" market that resists movement.

Negative GEX: Dealers are Short Gamma—they sell drops and buy rallies, acting as volatility accelerant.

Actionable Intelligence

  • Positive GEX (Stabilizing): Mean-reversion strategies perform best. Market is sticky.
  • Negative GEX (Volatile): Trend following favored. Moves are exaggerated—don't fade.
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Max Pain Strike

The market's center of gravity. Based on Maximum Pain Theory, this is the price level where aggregate option writers minimize liability and maximize premium capture.

Mechanism

Calculated by iterating all strikes to find the price rendering maximum value of options (Calls + Puts) worthless. Gravitational pull strengthens as time to expiry approaches zero.

Actionable Intelligence

  • Magnetism: Price tends to be pulled toward this level near 3:00 PM on expiry days.
  • Targets: Use as profit target when price significantly deviates from it.
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Regime Matrix

A meta-classification state machine solving dimensionality by aggregating flow, structure (GEX), and toxicity into a single Physics Engine state.

Logic Vectors

Vflow: Kinetic direction (EWMA)

Vstructure: Floor stability (GEX Sign)

Vtoxicity: Informed order flow ratio

States & Tactics

  • BULLISH (Pos GEX + Pos Flow): Slow grind up.
  • STRONG BULL (Neg GEX + Pos Flow): Gamma Squeeze. Fast upward movement.
  • BEARISH (Pos GEX + Neg Flow): Slow grind down.
  • STRONG BEAR (Neg GEX + Neg Flow): Crash dynamics.
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Flow Bias

The Tactical Compass. Unlike Regime (which includes structure), Flow Bias focuses strictly on aggressor's current dominance, acting as first derivative signal for entry timing.

Mechanism

Derived from Z-Score quantization of Flow EWMA relative to recent standard deviation. Filters "noise" (Neutral) from "conviction" (Bull/Bear).

Actionable Intelligence

Use to time entries within broader Regime:

  • Regime Bullish: Wait for Flow Bias to flip Bullish before entering.
  • Divergent: If Regime is Bull but Bias is Bear, stand aside—wind fights current.

Scenario Playbook

The Gamma Squeeze

  • GEX: Highly Negative
  • Flow ROC: High Spike
  • Flow Bias: Strongly Bullish
Dealers are short gamma and chasing price up. Aggressive buyers are stepping on the gas. Volatility expands rapidly.

The Liquidity Trap

  • GEX: Positive
  • Price: Making New Highs
  • Flow EWMA: Negative/Declining
Price is drifting up, but "Smart Money" is using the liquidity to unload positions. Expect a sharp reversion to the mean.

The Floor

  • GEX: Very Large Positive
  • Price: Dropping into High Gamma Strike
  • Flow ROC: Near Zero
Dealers are Long Gamma and must buy the dip to hedge. Volatility is absorbed. A bounce or stagnation is highly probable.

Master Cheat Sheet

Metric State Signal Interpretation
Flow EWMA Crossing 0 upwards Bullish Trend Start
Flow ROC High Spike (> 5.0) Panic Buying / Squeeze Imminent
Total GEX Positive Mean Reversion (Buy Low, Sell High)
Total GEX Negative Trend Acceleration (Go with Flow)
Max Pain Price >> Pain Gravitational Pull Down (Late Day)
Regime Strong Bear Cash is King / Puts (Crash Dynamics)