Chapter 3
Reading the Heatmap
Interface overview — how to interpret colors, nodes, filters, and key structures
GEX Heatmap Dashboard
GEX Heatmap — key structural elements: header panel, color nodes, spot line, and ★ anchors

🗺️ Heatmap Interface Overview

The GEX/VEX heatmap displays dealer exposure at each strike price as a horizontal bar chart. Each row represents one strike, with the bar length and color indicating the magnitude and type of exposure.

📊 Header Panel

The top panel provides a snapshot of the overall market state:

FieldDescription
PRICECurrent spot price of the underlying
NET GEXSum of all strike-level GEX values. Positive = stabilizing. Negative = volatile environment
+GEX STRIKEThe strike with the largest positive GEX — the primary "magnet" or "pin" level
−GEX STRIKEThe strike with the largest negative GEX — the primary "accelerant" level
ATM IVAt-the-money implied volatility, indicating the market's expected move
OI TRACK / EXPIRYThe expiration being tracked and its time to expiry

When viewing VEX, the header shows NET VEX, +VEX STRIKE, and −VEX STRIKE instead.

🎨 Color Coding

GEX Mode

ColorGEX SignNameMeaning
■ GreenPositive (+)Yang (양)Dealer positioning absorbs price movement. Lower volatility. Price tends to move smoothly.
■ PurpleNegative (−)Yin (음)Dealer positioning amplifies price movement. Higher volatility, "wicky" interaction. Overshoot before reversal is common.

VEX Mode

ColorVEX SignNameMeaning
■ GreenPositive (+)Yang (양)IV decline drives dealer buying. IV spike drives dealer selling.
■ PurpleNegative (−)Yin (음)IV decline drives dealer selling. IV spike drives dealer buying.

📏 Reading Node Values

Each strike shows a dollar value (e.g., +$1.8M, −$3.4M). This represents the notional exposure at that strike.

Absolute Value is King

The most important factor is not whether a node is positive or negative. What matters most is the absolute value:

The larger the absolute value, the stronger the influence on price.

A −$5M node is more influential than a +$500K node, regardless of sign. The sign tells you how price will interact (smooth vs. volatile); the absolute value tells you how strongly.

⏰️ Expiration Filters

FilterUse Case
ALLAggregate view across all expirations. Best for understanding the overall positioning landscape.
0DTE / NEARESTSame-day or nearest expiration. Highest gamma. Best for intraday trading.
≤7DWeekly view. Good for swing trades and near-term structure.
≤30DMonthly view. Shows larger structural positioning including OPEX-related flows.
Specific ExpiryIsolate a single expiration date to analyze its unique contribution.

Why Expiration Matters

Gamma increases as expiration approaches. A strike with 1 day to expiry will have far more gamma than the same strike with 30 days to expiry:

  • 0DTE/NEAREST maps show the most immediately impactful levels
  • ≤30D maps reveal larger structural positioning that may dominate on a weekly/monthly timeframe
  • Individual expiry views help identify whether a node's influence will expire soon or persist

🔀 Switching Between GEX and VEX

Use the GEX / VEX toggle in the header to switch views. Both views share the same strike layout, making it easy to compare:

  1. Note key levels on the GEX map
  2. Switch to VEX
  3. Check whether those same strikes show confluence (same sign) or opposition (opposite signs)

Confluence between GEX and VEX at the same strike creates higher-conviction levels.

🔍 Identifying Key Structures

When you open a heatmap, look for these structures in order:

Key structures annotated heatmap

1. Find the Dominant Nodes

Scan for the largest absolute values. These are your primary levels of interest. Don't clutter your analysis with every small node — focus on the ones that stand out.

2. Locate the Spot Price

The yellow horizontal line indicates current spot price. Note where spot sits relative to the major nodes.

3. Map the Zones

Above spot: What is the character? Mostly positive (stabilizing) or negative (volatile)?

Below spot: Same question. A wall of negative GEX below spot is a warning sign for potential acceleration to the downside.

4. Identify Voids

Look for clusters of $0 or near-$0 nodes between larger nodes. These are zones with minimal dealer positioning — price can move through them quickly with little resistance.

5. Check for Asymmetry

Is the positioning balanced above and below spot, or heavily skewed to one side? Asymmetry in node distribution creates asymmetry in market behavior.

⭐ Star Markers

Nodes marked with a indicate the largest absolute value nodes (Anchors) on the current map. These are the most influential levels and should be your primary focus.

Star marker anchors on heatmap

📚 Key Takeaways

  • Absolute value > sign or color when assessing node importance
  • Use the header panel for a quick read on the overall environment (NET GEX/VEX, key strikes)
  • 0DTE/NEAREST for intraday, ≤7D for swing, ≤30D for structural analysis
  • Compare GEX and VEX at the same strikes for confluence
  • Focus on dominant nodes, spot position, zones, voids, and asymmetry
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