Core concepts: nodes & magnets

Nodes: colors & values

The Dealer board is built to reveal dealer Exposure at each strike. Every strike has a positive or negative value, shown in green or red by default. You can customize these colors under Settings → Charts:

Key principle

Absolute value helps you set priorities: the larger it is, the more attention the area typically deserves. It does not mean price must reach that level, nor does it automatically make the level support or resistance.

• Positive Exposure node: lower-volatility interaction—price often moves more smoothly, with fewer wicks and violent swings.
• Negative Exposure node: higher-volatility interaction—price becomes more erratic and forceful. When price touches a negative Exposure node, it often overshoots before pulling back. This is a common way dealer hedging can shake overconfident traders onto the wrong side.

Positive vs. negative Gamma: damping or amplification

The sign does not predict direction. Under a given set of modeling assumptions, it describes whether dealer hedging after a price move is more likely to dampen or amplify that move: positive Gamma tends to suppress volatility, while negative Gamma tends to amplify it. See “Options & hedging basics” for the hedging mechanism.

Therefore, a large negative value below spot is not “natural support,” and a large negative value above spot is not “natural resistance.” These areas are more likely to be part of a violent interaction or acceleration path. Whether price holds, rejects, or passes through must be confirmed by price action and the full structure.

The magnet concept

Every node on the heatmap / ladder chart acts like a magnet in the market. Because dealer OI must be hedged, price may be pulled toward these areas—but the same areas can also become “walls” that push price away and produce reversals.

• The farther price is from a high-value node, the weaker the magnetic pull.
• As price approaches a high-value node, the magnetic pull strengthens.
• When price runs directly into a node, it may deflect or repel—similar to two like magnetic poles pushing apart.

Anchor

Anchor is the largest absolute-value node on the heatmap and represents the Exposure area most worth tracking right now. Near expiry, price may linger around it, react to it, or be pulled toward it, but it is not a guaranteed destination.

Key characteristics

• Multiple large-value nodes may exist at the same time.
• When several strong nodes exist on opposing sides, price can churn between them or become pinned.

Two typical patterns near an Anchor

• Late-session pinning: near the close, dealers may tend to pin price around the Anchor and narrow the range. Short-term fade-the-edges tactics often work better in this environment.
• Early-session push-away: if price reaches the Anchor too early, dealers may actively push it away because defending the level all day would be costly, making an early “expulsion” more efficient.

Checkpoint

A Checkpoint acts like a tollbooth. It sits between spot and a more distant Anchor, making it harder for price to travel there in one move. These nodes often behave as inflection points where direction changes.

• When price fails a test at a Checkpoint, the entire heatmap structure may reshuffle.
• A reshuffle often foreshadows a trend change or indicates that dealers are adjusting where they want price pinned.
• Rejection at a Checkpoint early in the session often marks a higher-probability reversal.

Blind Zone

A Blind Zone is a favorite dealer “trap zone.” Directional traders often receive their worst risk/reward while price is in this area. Unless you sell options or trade spreads, it is generally better to avoid it.

Why the Blind Zone is dangerous

• Dealers favor range-bound markets.
• The upper and lower range boundaries are usually clear on the heatmap.
• Direction becomes uncertain when price is in the middle of the range.

Trades inside the Blind Zone often offer risk/reward near 1:1—no asymmetric edge and not worth the risk.

Node retest strength

When looking for a bounce, check whether the node is “fresh.” Not every node retains its influence indefinitely.

If price has already been “sent away” from a node—touching it once and leaving—its influence weakens. Every additional test further reduces the probability of a strong bounce. To decide whether a test is meaningful, do not look only at whether price touched the line:

• On the first approach, look for slowing, rising volume, clear rejection, or time spent at the level. This provides the strongest evidence.
• Whether price can hold on the other side matters more than a brief pierce; one wick does not mean the structure has changed.
• Prefer confirmation from same-direction spot movement, volume/order flow, and nearby expiry structures instead of relying on that single GEX row.

Node growth & depletion

Dealer GEX shows not only where Exposure is concentrated, but also how quickly that concentration is changing:

• Rapid accumulation: dealers are quickly adding Exposure. This acts like a strengthening magnet and can pull price more forcefully toward the node.
• Rapid depletion: Exposure is disappearing quickly, so a level that looked strong may suddenly weaken.

Fast changes in value often accompany rising volatility, market acceleration, or sharp reversals.

Rolling floors / ceilings

Another important concept related to node velocity is how the change occurs:

• Falling ceiling: potentially strong bearish evidence—the value of the overhead pressure level is shrinking while the level itself moves to a lower strike.
• Rising floor: potentially strong bullish evidence—the value of the support level below is shrinking while the level itself moves to a higher strike.

To determine whether migration is genuine, inspect Today, near-term, and longer-dated structures separately rather than relying on an aggregate value. Two or three consecutive migrations in the same direction are more credible than one jump.

Shield

A Shield usually appears around major news or macro events—such as rate decisions, inflation data, employment data, or earnings—and represents large, slow-changing protective positions far from spot.

Characteristics

• Usually remains stationary or decays slowly.
• May appear both above and below spot, usually at a considerable distance.
• Acts more like “insurance” than an active magnetic force.

The closer a Shield is to spot, the more clearly it can shape intraday trading. The farther away it is, the less influence it has.

Void

A Void is an area of sparse Exposure between neighboring nodes. Price encounters less hedging friction while crossing it and may move faster. A Void combined with negative Gamma is usually more violent; with positive Gamma, it is relatively mild. For how to use it in path analysis, see air pockets and fast traversal in “Range, trend & acceleration structures.”

Monthly expiry week

The week around the third Friday of each month contains a large concentration of options expiries. During this period:

• Nodes carry less reference weight because many contracts are about to expire.
• Position rolls and resets can temporarily distort dealer structure.
• The structure usually becomes clear again quickly after monthly expiry week ends.

Summary

1. Use absolute value to identify priorities, then combine Gamma sign, location, and price reaction to make a judgment.
2. Prioritize nodes that have not been tested and stay cautious around tested nodes.
3. Watch the rate of change in values for clues about dealer urgency and intent.
4. Avoid the Blind Zone, respect Checkpoints, and note the Anchor each day.
5. Stay alert to external factors such as monthly expiry week and Shields.