TOOLS — REGIME ANALYSIS

Regime Classifier: 7-State Structural Model

The Regime Classifier identifies the current structural environment based on where price is trading relative to key gamma levels. Each of the seven regimes describes a different relationship between price, dealer positioning, and estimated hedging behavior.

The Seven Regimes

COMPRESSION — Price near the gamma flip. Dealers close to neutral. Moves tend to be contained within a range. The default center state.

TRENDING LONG — Price above the flip with moderate positive GEX. Structure leans bullish but is not extreme.

TRENDING SHORT — Price below the flip with moderate positioning. Structure leans bearish.

NEGATIVE GAMMA — Total GEX is negative and price is away from the flip. Dealer hedging amplifies moves. Historically associated with wider intraday ranges.

ESCAPE VELOCITY — Price approaching or pressing against the call wall. If breached, structural resistance above diminishes. Historically associated with breakout conditions.

CASCADE RISK — GEX is negative near the flip level. Negative gamma plus proximity to the structural inflection — historically associated with sharp, fast moves.

PINNED — Price near the put wall. Dealer buying at this level provides estimated support. Historically associated with price stalling or bouncing.

Hysteresis

The classifier uses hysteresis — a delay buffer — to prevent flickering between regimes on minor price oscillations. A regime change must be sustained for multiple compute cycles before the label updates. This means the displayed regime may slightly lag real-time conditions, but it avoids the noise of constant switching.

Important Context

Regime labels are descriptive, not predictive. They describe what the structure looks like right now — not what price will do next. The regime can change within minutes as price moves, options expire, or large trades alter positioning.

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Gamma Sonar provides structural analytics for educational purposes only. Not financial advice. All models involve assumptions. Past patterns do not guarantee future results.