Retail watches candles.
Institutions watch positioning in the options market.
Gamma exposure influences how aggressively dealers must hedge.
When dealers are long gamma, volatility compresses.
They hedge against moves, dampening price swings.
When dealers are short gamma, volatility expands.
They hedge with momentum, amplifying price movement.
This is why some breakouts fade instantly.
And others accelerate violently.
The difference is not emotion.
It is hedge pressure.
Options positioning creates invisible boundaries.
Strike concentration creates magnetic zones.
Dealer hedging creates flow.
Retail traders see support and resistance.
Professionals see gamma exposure.
When gamma flips from positive to negative,
volatility regime shifts.
And when volatility regime shifts,
strategy must adapt.
Understanding this transforms your perspective from pattern-based trading
to flow-based execution.
Because volatility is not random —
it is mechanically influenced.
And those who understand the mechanics
stop reacting to movement
and start anticipating its intensity.