Report Guides
How dealers adjust hedges at key GEX nodes
When price approaches a key GEX node, dealers must adjust their hedges. This hedging activity creates a reflexive feedback loop — the act of hedging itself moves the market. Dealer Reflexive Action tracks whether dealers are accumulating (adding hedges, reinforcing the level) or unwinding (removing hedges, weakening the level) at each zone.
The distinction between accumulating and unwinding is critical. When dealers accumulate hedges at a node, they reinforce it — creating stronger support or resistance. When they unwind, they weaken the level, making breakouts more likely. The report tracks GEX acceleration to classify each zone entry as accumulating or unwinding.
| Zone Type | Action | Typical Outcome |
|---|---|---|
| +GEX Node | Accumulating | Strong bounce (65-78% win rate) |
| +GEX Node | Unwinding | Weak bounce or break (45-55%) |
| -GEX Node | Accumulating | Accelerated move (60-70%) |
| -GEX Node | Unwinding | Deceleration / reversal (50-60%) |
Accumulating bounces: When the report shows dealers accumulating at a +GEX node, fade into the level. The reinforcing hedging activity creates a high-probability bounce zone. These are your highest-edge setups.
Unwinding breaks: When dealers are unwinding at a node, be prepared for a breakdown. The weakening hedging support means less resistance. Trade the breakout through unwinding zones with momentum.