Best TradingView indicators for options trading

Bollinger Bands are the go-to volatility tool for options traders because band width maps directly to implied volatility expansion and compression. A Bollinger squeeze — bands narrowing over multiple sessions — signals that volatility is compressing, which is a common setup before a larger directional move. Conversely, extremely wide bands after a volatility spike warn against paying inflated premiums for directional options.

RSI earns its place on options charts for two reasons: overbought/oversold reads that can help time protective entry points, and divergence signals that flag momentum exhaustion before a reversal. The 14-period default works well on the 1h–4h chart for timing weekly options entries. RSI also helps traders avoid chasing entries when momentum is already extended.

MACD histogram momentum reads help options traders assess the directional bias on the underlying's next swing. A MACD histogram that compresses toward zero on the 4h chart after an uptrend is an early warning of potential trend weakening. The zero-line cross is a reliable regime-change signal that many multi-week options traders watch for positioning adjustments.

ATR is essential for options position sizing and strike selection. The 14-period daily ATR shows the average daily range of the underlying — traders use this to estimate expected moves and evaluate whether distance to a strike is realistic over a contract's remaining life. This is one of the most practical applications of ATR for derivatives traders.

VWAP is the intraday reference used by institutional desks that are also active in the options market. Price above VWAP on a liquid underlying (SPY, QQQ) gives a directional tilt for short-dated entries; persistent rejection below VWAP supports a bearish directional read. VWAP deviations on 0-DTE options days are particularly high-signal for intraday traders.

Volume Profile reveals the price levels where the most volume has changed hands — the point of control (POC) and high-volume nodes (HVNs) act as magnet prices for the underlying. Options traders use these as structural reference points for defining range boundaries and evaluating whether a strike target has structural support or resistance nearby.