Crypto Options Confluence Overlay

Crypto Options Confluence Overlay is a decision-first options framework designed to help crypto traders answer one core question clearly and consistently:

Should I trade CALLs, PUTs, or stand down today?

This indicator does not attempt to price options or replace Greeks. Instead, it focuses on timing, directional bias, and structured exits, using a confluence of price, volatility, momentum, and higher-timeframe context on the daily chart.

It is designed specifically for crypto options and perpetuals, where volatility is high and overstaying trades is often more dangerous than missing them.

What This Indicator Shows
1️⃣ Directional Bias (CALL / PUT / NO-TRADE)

CALL → bullish directional environment

PUT → bearish directional environment

NO-TRADE → mixed alignment (stand down)

This bias is derived from:

Mean trend alignment

Momentum structure (Stoch RSI behavior)

Volatility context (ATR + deviation bands)

Optional weekly directional filter

2️⃣ Timing Window

The indicator highlights whether a trade window is ACTIVE, BUILDING, or OFF.

ACTIVE → valid timing environment

BUILDING → momentum approaching, but not ready

OFF → no timing edge present

This prevents entering trades too early or after momentum has already passed.

3️⃣ Preferred Entry Zone (PEZ)

Shaded zones visually guide where entries are statistically cleaner, rather than chasing price.

Green PEZ → preferred CALL entry region

Red PEZ → preferred PUT entry region

These zones are informational — they help assess entry quality, not force entries.

4️⃣ Primary Exit (Early Profit Zone)

Instead of encouraging traders to hold for a full ATR move, the indicator introduces a Primary Exit, which represents a partial ATR objective.

This:

Reduces emotional decision-making

Encourages consistent profit capture

Aligns better with how options premiums often move

The Primary Exit is intentionally designed as a realistic exit, not a maximum move target.

5️⃣ ATR Target & Risk Context

For traders who want structure:

ATR Target → extended move reference

Band-based Risk Line → invalidation zone

These are context tools, not mandatory holds.

6️⃣ Confidence Score

Each trade environment is scored (e.g., 2/4, 3/4) based on alignment factors.

Higher scores indicate cleaner conditions, not guaranteed outcomes.

How to Use the Indicator (Model Trade Example)
Example: CALL Trade

Bias: CALL

Window: ACTIVE

Confidence: 3/4 or higher

Price Location: Inside or near GREEN PEZ

Entry: Near PEZ during the active window

Primary Exit: At the Primary Exit line

Optional Runner: Toward ATR target if momentum remains strong

Risk: Below the Band-1 risk line

If bias flips to NO-TRADE or PUT, the trade is considered invalid.

Example: PUT Trade

The same process applies in reverse:

Red PEZ

Downside Primary Exit

Risk above Band-1 high

What This Indicator Is — and Is Not

✔ Is

A structured decision engine

Designed for crypto options behavior

Focused on timing + exits

Effective for avoiding bad trades

✖ Is Not

A signal-only indicator

A replacement for position sizing

A guarantee of profit

A strategy that forces constant trading

Recommended Use

Daily timeframe

Liquid crypto pairs

Options or perpetual traders

Traders who value discipline over frequency

Final Note

This indicator will often say NO-TRADE — by design.
Standing down is considered a valid, successful outcome.