Vanna + Charm are complex 2nd order derivatives of the underlying options. Understanding Vanna and Charm flows helps investors predict how options expirations might affect assets, for a more disciplined trading strategy.
Vanna + Charm are less commonly discussed than the first-order Greeks like Delta or Gamma, but they are essential to better understand how structural flows affect the market as options approach expiration.
Vanna + Charm flows strengthen as options approach expiration. Vanna + Charm flows exit as options expire. #VIXpiration marks the beginning of the window of non-strength (some say window of weakness)
... this indicator is an attempt simplify these ideas for the average trader
Vanna Charm - Bullish Trends
In a Bullish Trend, the return of often support the market on each pullback
Vanna Charm - Bearish Trends
In Bearish Trends, often flips for risk assets + bullish for inverse ETFs
often support the market on each pullback
