Option indicator do analyse trade with currency options for previous trading session on CME, and it try to define support and resistance of current day.
The main result of indicator is Key Zone (A on screenshot) - the balance level between large market operators, this is zone where main battle will be played between bears and bulls, and usually it's not easy to brake that zone. If day was opened above Key Zone than current day considered as bullish day, and we supp ose that price will rebound up from Key Zone. And vice-versa - if day was opened below Key Zone than current day is considered as bearish day, and we suppose that price will rebound down from Key Zone.
The first levels right after Key Zone (D on screenshot - major levels) are approximate Stop Loss levels, or levels for aggressive trading - if price broke Key Zone than major levels is level where to open position in direction back to Key Zone.
Levels Call (C on screenshot) and Put (D on screenshot) are approximate targets for long/short positions, this are levels where we should fix our profit - Take Profit levels.
Yesterdays japanese yen example.
This is base classic method to trade option levels, the other methods will be described in next articles.
