Volatility Regime
The current gamma environment determines whether markets are calm (positive) or volatile (negative).
The volatility regime is determined by whether the current price sits in a positive or negative gamma zone:
- Positive gamma regime: Price above Flip Point. Low volatility, mean-reverting.
- Negative gamma regime: Price below Flip Point. High volatility, trending.
- Regime change: When price crosses the Flip Point, the entire market dynamic shifts.
Understanding the current regime is the first step in any GEX-based trading decision.
See also: Flip Point (F), Regime-Based Trading