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The higher the hidden wave, the greater the possibility of market reversal?
The higher the hidden wave, the greater the possibility of market reversal.

Hidden wave, also known as implied volatility, can be compared to "PE (price-earnings ratio)" of options.

In fact, there is no P/E ratio for options. This metaphor is just to show that implied volatility is an indicator of whether the option price is overvalued (just like the price-earnings ratio is for stocks).

The implied volatility is higher than the actual volatility, which means that the price of the option contract is overvalued.