KF - GEX+
The Kingfisher offers a unique view into Dealer Delta Map in the Bitcoin market.
The GEX+ tool is available to subscribed users, or users using a Trading Session
GEX measures the impact of market maker hedging activity on the derivative market, positive GEX readings indicate suppressed volatility, while negative readings exacerbate volatility. This metric can be used to anticipate changes in trading ranges and potential market reversals.
GEX often aligns with options expiration cycles and can be used to track changes in volatility or market direction. He emphasizes that while GEX is not a directional call, it can be used to predict potential market shifts and guide trading decisions.
To use GEX+ effectively in your trading, follow these steps:
- 1.Understand the concept of gamma exposure: Familiarize yourself with options trading and the concept of delta and gamma in the context of options. Delta measures the change in the option's price relative to the change in the underlying asset's price, while gamma measures the rate of change of delta.
- 2.Monitor GEX+ readings: Positive GEX+ readings indicate that market makers are hedging their positions in a way that suppresses volatility by buying into dips and selling into rallies. In contrast, negative GEX+ readings suggest that hedging activity will exacerbate volatility by selling into dips and buying into rallies.
- 3.Anticipate changes in trading ranges: When the GEX+ reading is positive, you can expect a smaller, tighter trading range in the market, whereas a zero or negative GEX+ reading indicates a larger, more volatile trading range. This information can help you adjust your trading strategy accordingly.
- 4.Watch for potential market reversals: GEX+ can be useful for identifying potential market reversals, especially when it aligns with options expiration cycles. A sudden drop in GEX+ may indicate a change in market direction or an increase in volatility.
- 5.Identify key strike zones and support/resistance levels: Analyze GEX+ data to identify key strike zones or inflection points in the market where support and resistance levels might come into play. This can help you make more informed decisions about when to enter or exit a trade.
Remember that GEX+ is not a directional call, but it can provide valuable insights into market behavior and potential shifts in volatility. Incorporating GEX+ into your trading strategy can help you make more informed decisions and improve your overall trading performance.
GEX+ > 0 : Positive delta > Dealer Sells
GEX+ < 0 : Negative delta > Dealer Buys
GEX+ Cheatsheet
GEX+ is a tool that helps people who trade in the stock market predict what might happen in the future. It measures how people who make a lot of trades (called "market makers") are affecting the market. If the GEX+ number is high, it means that the market makers are keeping things calm and the prices are not changing much. But if the GEX+ number is low, it means the market makers are making things more chaotic and the prices might change a lot.
To use GEX+ effectively, traders need to understand a few things about options trading and pay attention to the GEX+ readings. They can then anticipate changes in the market and adjust their trading strategy accordingly. It's not a guarantee of what will happen, but it can help traders make better decisions.
GEX+ is a tool that helps traders anticipate potential changes in the crypto markets. It measures the impact of options dealers hedging activity on the derivative market, which can provide valuable insights into market behavior and potential shifts in volatility. Essentially, GEX+ shows how much the market makers are buying or selling at certain times, and this information can be used to predict changes in the market.
When the GEX+ number is high, it means that market makers are keeping prices relatively stable by buying when the market goes down and selling when it goes up. This can be a good time to trade because there is less volatility and prices are not likely to change as much. But when the GEX+ number is low, it means that market makers are making things more chaotic by buying when the market goes up and selling when it goes down. This can be a riskier time to trade because prices are more likely to change quickly.
To use GEX+ effectively, traders need to understand the concept of gamma exposure, which is related to options trading and the rate of change of delta. They should also monitor GEX+ readings and anticipate changes in trading ranges, as well as watch for potential market reversals. By analyzing GEX+ data, traders can identify key strike zones or inflection points in the market where support and resistance levels might come into play. This can help traders make more informed decisions about when to enter or exit a trade.
Overall, GEX+ is not a guarantee of what will happen in the market, but it can provide valuable insights into market behavior and potential shifts in volatility. By incorporating GEX+ into their trading strategy, traders can make more informed decisions and improve their overall trading performance.
Last modified 6mo ago