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Documentation3 Gammastrike Tools3.7 G-Scan3.7.2 Characterizing Underlying Spot Movement

3.7 G-Scan

The G-Scan has 4 different technical trends it can Identify for both bullish and bearish behavior, for a total of 8 signals. The G-scan uses a 5-day lookback period of both day-over-day behavior of price movement and a combination of Greek change/behavior to classify trends. It’s important to note these are refreshed daily and tickers can very easily change categories day-to-day. Just because a stock is bearish today in the G-scan, does not mean it’s going to be bearish – or even included – in the G-Scan tomorrow

  • Bullish (Bearish) Consolidation. Upward (downward) price movement followed by a period of little volatility. This is usually accompanied by a decrease (increase) in Gamma Max

  • Bullish (Bearish) Trend. A ticker that has been trending upwards(downwards) the past days. A channel of price movement in combination with Gamma Max Decreasing (increasing) as the near-the-money positioning begins to reposition for further moves to the upside (downside)

  • Bullish (Bearish) breakout. After a stock has trended upward (downward) for several days, it rapidly moves upward (downward) outside it’s current trend. This, in combination with pushing though a major Greek level, whether it’s Delta Neutral, Gamma Neutral, can be a very opportune trade.

  • Bullish (Bearish) Reversal. A stock That has been trending upwards (downwards) and the experiences a change in price action in the opposite direction. This price action in combination with the ticker rejecting off of a major Greek level can indicate a potential turnaround for a stock to go long (short) in the near term.