The chart provides the structure. The evaluator applies the logic. If the data feeding the system is chaotic, the output will be chaotic.
The custom TradingView script provided in the System Setup Guide is not a magic signal generator. It does not tell you when to buy or sell. It is a visual filter designed to do one thing: remove subjective interpretation from trend, momentum, and structure.
Here is exactly how to read the dashboard before feeding its data into the AI evaluator.
The Foundation: The Moving Average Stack
The core of the structure layer is a six-level moving average stack. Price alone can be deceptive; the relationship between these averages defines the condition of the structure.
- Short-Term Momentum: EMA 8, EMA 21, EMA 34.
- Structural Trend: SMA 50, SMA 100, SMA 200.
How to read it:
We are looking for alignment. In a strong, healthy uptrend, the EMAs are fanned out sequentially above the SMAs.
- If price loses the 50 SMA, the short-term structure is weakening. Caution is required.
- If price loses the 100 SMA, the chart is damaged.
- If price is trading below the 200 SMA, the long-term structure is compromised.
Selling Cash-Secured Puts (CSPs) below a broken 200 SMA means you are fighting the macro trend. The premium might look great, but the probability of assignment - and continued downside after assignment - is elevated.
Timing vs. Trend: RSI(2)
Most retail traders use a 14-period RSI to measure trend exhaustion. The Wizolver dashboard uses a 2-period RSI.
RSI(2) is not a trend indicator. It is a strict short-term timing mechanism.
How to read it:
When selling options, timing the entry within the broader structure is critical to maximizing premium while minimizing immediate drawdown.
- RSI(2) > 90: Price is acutely overbought. Even if the macro chart looks flawless, entering here means selling premium into extension. Wait.
- RSI(2) < 10: Price is acutely oversold. In a macro uptrend, this is often where downside expansion improves CSP positioning.
If RSI(2) is screaming 95, the AI evaluator will hard-reject the trade, regardless of the underlying trend.
The Objective Structure: Automated Support & Resistance
Drawing manual support and resistance lines is a trap. It allows confirmation bias to creep in. You will subconsciously draw lines exactly where you want the strike to be, just to justify collecting the premium.
The script eliminates this. It automatically tracks recent pivot highs and pivot lows, plotting objective structural zones based on mathematical lookbacks.
How to read it:
The primary question before selling a put is: "If I am assigned at this strike, is the price landing on structure, or falling into a vacuum?"
- The Strike Must Be Below Support: You want the automated green support line to sit between the current price and your selected strike. The support acts as a structural buffer.
- The Vacuum: If you select a strike and there is no green support line above it, you are selling into empty space. If the stock drops, there is no historical structural floor to slow it down.
The ADX Filter: Measuring Trend Strength
The Average Directional Index (ADX) measures the strength of a trend, regardless of direction.
How to read it:
The dashboard highlights ADX against a threshold (default 20).
- ADX < 20: The market is chopping sideways. Moving averages will cross over each other uselessly.
- ADX > 20: A legitimate trend is in place.
When combined with the EMA stack, this confirms whether a trend is structurally strong, or just drifting higher on low volume.
The Warning Flags: Gaps and Extensions
At the bottom of the dashboard, the script monitors for anomalies that ruin clean setups:
- Large Gaps (G): A stock that recently gapped up heavily without building a base is a dangerous underlying for a CSP. The gap creates a massive structural vacuum underneath the price.
- Large Candles (C): Extreme single-day volatility often precedes unpredictable follow-through.
If price is trading more than 10% above the EMA 21 or SMA 50, the asset is extended. Selling a put here, unless deeply out of the money, means you risk assignment on a mean-reversion pullback.
Summary
The dashboard does not trade for you. It formats reality.
Before opening the options chain, glance at the dashboard. Is the stack aligned? Is the RSI(2) stretched? Is there a green line between the current price and your intended strike?
If the structure is weak, close the chart. Without structure, premium is irrelevant.