Max Pain and Vol Trigger are options-derived reference levels available in TensorAlgo's GEX / OI context.
They answer different questions and should not be used interchangeably.
Max Pain
Max Pain is a reference level calculated from the selected option expiry.
It represents the underlying price associated with the lowest aggregate intrinsic payout across the relevant option set at expiry.
Max Pain can be useful as expiry context, but it does not mean the market must trade to that level.
Vol Trigger
Vol Trigger is a volatility-regime reference level derived from the current options context.
Its role is to help identify where the expected market behavior may differ on either side of the level.
Vol Trigger is not:
- a guaranteed breakout price;
- an automatic entry;
- a guaranteed support or resistance level.
Confirm the expiry
Both values depend on the selected expiry and current data.
Before comparing a level with an earlier session, confirm:
- the instrument;
- the selected expiry;
Add them to a trading process
Max Pain and Vol Trigger are most useful when combined with:
- current market structure;
- the active session;
- Playbook rules;
- entry and invalidation criteria;
- risk management.
A reference level alone does not establish a complete setup.