HeatseekerPATTERN: Trend
Price fixates on a king node far away from spot with comparatively small counter-directional skew. As it trades towards the initial king node, it then…
DESCRIPTION
Price fixates on a king node far away from spot with comparatively small counter-directional skew. As it trades towards the initial king node, it then selects the node above it as the new king node. If price begins to trade away from the king node, observe the changes in the values around that node's strike. If the values of those nodes remain relatively unchanged or even increase, it suggests price may eventually trade back towards it.
Mechanically, the nodes away from price tend to fade in value while the values in the direction of the trend increase in value.
HOW TO APPROACH
Trend days tend to stair-step, so pullbacks are where many traders look for the trend to resume, as long as price action and the heatmap still support it. Chasing price on a trend day makes the risk harder to define.
Price trades downwards to the 6400 strike with few nodes of significance above spot to provide an opposing force. (08/19/25)
The 6585/6580 strikes provide an upward skew. Price often slows as it approaches these dual strikes. (09/11/25)
Price locks onto the 6430 strike as its initial target. We can observe a clear bullish skew as the absolute value of the 3 nodes above spot dwarf that of the 3 nodes below. (10/01/25)
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