LibreTrader defines a deterministic structural model for catalyst-driven price displacement. The system quantifies structural pressure, identifies catalyst leverage and exhaustion, measures profitability drag versus expansion, detects forced accumulation and forced distribution, and treats CALLS and PUTS as equal outcomes.
Price movement is modeled as pressure displacement away from equilibrium. That displacement can occur upward or downward. The system does not interpret direction subjectively, use sentiment or narrative, or manually weight variables.
All four PAS structural gates are satisfied. Maximum directional confidence within the v12.3 framework. Framework routes Class A to full Conflict Sheet analysis covering both the accumulation and inversion paths before execution routing.
Structural conviction is present but tempered by friction or incomplete gate resolution. Viable with controlled parameters. Conflict Sheet analysis is optional but recommended. Monitor for Class A upgrade conditions.
Insufficient gate resolution for directional positioning under current framework conditions. No directional contracts permitted. Observation-only classification. Track for condition changes that could promote to Class B.
Short gamma squeeze or structural accumulation detected. Dealer gamma positioning reinforces upward displacement. Conditions: SI/P-E high, PCS ≥ +0.5, OI below Call Wall, DTC 3–5, VWAP recovering from negative Z, IV/HV in expansion regime, Net GEX negative.
Incremental overhead supply identified. Not a full inversion — distribution is building. Both accumulation and inversion routes should be evaluated against the polarity score split. Conditions consistent with: low SI/P-E or squeeze trap, negative PCS, OI above Put Wall, high DTC, VWAP rejection above +1.5 Z, IV/HV above Vega Wall (2.0+), positive Net GEX.
Post-exhaustion or profitability-drag inversion. Polarity matrix resolves bearish. Per the SCI: Forced Distribution condition. Evaluate short-side pressure, IV/HV regime, and Burn Model flags. This is the put-priority path.
Positive structural delta with call-side momentum. Framework supports continuation — confirm OI gravity position and Net GEX alignment before treating as actionable. Not as structurally clean as Forced Accumulation.
Bull and bear polarity forces are in structural equilibrium. No actionable directional edge exists. Framework designates this observation-only — no directional contracts permitted. Acc% and Inv% will both be near 50%.
Each input metric maps into a pressure field. These fields interact to produce the final structural output. Understanding the relationships between them is essential for interpreting rulings correctly.
This is the most critical binding relationship in the framework. IV/HV alone does not determine direction — PCS determines whether high IV is expansion fuel or a terminal bubble.
VWAP is an exhaustion detector. Combined with GEX, it identifies whether the current displacement will be amplified or dampened by dealer hedging activity.
Short pressure and cover friction interact to determine squeeze potential or distribution speed.
Different catalyst types carry different structural weights applied to the polarity matrix.
If PCS ≤ −0.5 AND IV/HV is high, the catalyst becomes a liquidity exit within 1–3 sessions. The initial move is a fade trap — the structural pressure resolves toward inversion after the initial displacement.
If PCS ≥ +0.5 AND SI/P-E ≥ +0.5, multi-session squeeze probability rises. The accumulation thesis can sustain multiple sessions rather than fading on the first green day.
If Binary Level > 120% AND Net GEX is Negative, a gamma shock regime is active. Dealer hedging amplifies movement in both directions. Contract selection must account for maximum velocity — both calls and puts can move violently.
PCS ≤ −0.75 triggers the Burn Model. Forced Accumulation is structurally invalid by default. The reversion harvest opportunity flag is elevated. Inversion priority routes the setup to Structural Distribution unless Net GEX flips strongly positive with a confirmed VWAP reclaim.
The Asphyxiation Gate is a universal inversion pivot protocol. It converts no-bid conditions into PUT triggers when structural exhaustion is detected. If ANY Red-Line condition is met AND Net GEX is Positive, the status becomes STRIKE INVERSION (PUTS).
Triggered when: 5D return ≥ +18%, OR 10D return ≥ +30%, OR 4+ consecutive green days. Confirms Overbought Tension elastic state. Gate 3 tightens — PCS ≥ +0.4 or SI/P-E ≥ 0.35 required. Inversion priority is active.
Triggered when: 5D return ≤ −18%, OR 10D return ≤ −30%, OR 4+ consecutive red days. Confirms Oversold Tension elastic state. Binary Level alone allowed for Gate 3. Short-side friction softened. Snapback probability elevated.
Both Rally Extension AND Slashing flags active simultaneously. Gate 1 thresholds relax to IV/HV ≥ 1.05 and |VWAP Z| ≥ 0.70. Both directional paths remain structurally open. Maximum elastic tension state.