Gamma Exposure (GEX)

How Draconic reads it

When options market makers sell options to traders, they hedge by buying or selling the underlying. The amount they need to trade changes as price moves; that sensitivity is gamma. Aggregate gamma exposure across all outstanding positions creates a mechanical force on price. In positive GEX, market makers buy dips and sell rallies as part of their hedging, dampening price moves and creating range-bound conditions. In negative GEX, they sell dips and buy rallies, amplifying moves and creating trending conditions. The gamma flip level — the price where aggregate GEX transitions from positive to negative — is the single most important level that never appears on any price chart. Knowing the regime before the session begins changes everything about how levels should be interpreted.