Hedge Wall
The gamma level where net open-interest gamma changes sign — a stock's volatility switch. Above it, moves have tended to compress; below it, to expand.
TL;DR: The hedge wall is the single price level that tells you what kind of market a stock is in — calm and mean-reverting above it, wild and trend-prone below it.
It comes from the options chain, not a chart pattern. Above the hedge wall the net gamma measure is positive and moves have tended to damp; below it the measure is negative and moves have tended to extend. Which side of the wall a stock trades on is the read. The level is computed from published open interest — not from dealer inventory, which is not publicly reported.
Of the four gamma walls, the hedge wall carries the one strong, durable edge — in backtests since 2012 it was statistically significant over a decade and held in calm and stressed markets alike. But it's a volatility signal, not a direction one: "below the hedge wall" means expect bigger moves, not "buy." Its reliability also varies by ticker, so it's best read with a per-name reliability grade. Full explainer: What Is the Hedge Wall? and the cluster hub, Gamma Walls Explained.
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