Negative Peaks (N1/N2)
Negative gamma peaks. Volatility amplification zones — use as stop-loss, NOT support/resistance.
N1 and N2 are negative net gamma peaks. Market makers are short gamma at these levels.
- Dealers amplify moves in both directions at these levels
- Breaking through triggers explosive volatility cascade
- NOT support/resistance — use as stop-loss levels only
Common mistake: Treating N1/N2 as support/resistance. These are volatility amplification zones. Price doesn’t bounce here — it accelerates through.
See also: Positive Peaks (P1/P2), Volatility Point (V)