📊 Understanding Auction Market Theory

At its core, the market works like an auction — constantly searching for fair value. Buyers and sellers interact, pushing price up and down, until both sides agree on where value currently lies.

Think of it like a grocery store.
If the price of peanut butter is too high, people stop buying. The store lowers the price until customers start buying again. If it’s too cheap, shelves empty fast, and the price rises. Eventually, the price settles at a level where both sides agree that it’s “fair.”

Markets behave the same way. Prices rise until buyers stop buying, fall until sellers stop selling, and then find balance somewhere in between. This constant back-and-forth creates value areas, where most of the trading takes place.

Here’s how it breaks down:

🟡 Balance
The market moves sideways, establishing fair value. Buyers and sellers agree that the current price is reasonable. Volume is high, volatility low.

🟡 Imbalance
New information or events cause disagreement, some participants see price as too cheap or too expensive. This creates a directional move as price searches for a new area of balance.

🟡 Acceptance or Rejection
When price moves to a new area, the market either accepts it (volume builds, price stabilizes) or rejects it (price quickly returns to the old range). Acceptance means the market has found a new fair value; rejection means it hasn’t.

The process repeats endlessly.
The market auctions up until buyers refuse to pay more, and down until sellers refuse to sell cheaper, always hunting for efficiency and balance.

Understanding this flow helps traders stop chasing candles and start reading structure:
the market isn’t random, it’s just an auction in motion, constantly searching for where value belongs.

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📚 Your trading charts are lying to you

Not because the data is fake, but because most indicators only show what already happened. They’re lagging reflections of price, not real insight.

Anna Coulling, one of the leading voices in Volume Price Analysis (VPA), teaches traders to strip away noise and focus on the two elements that actually move markets: price and volume.

Here are her 8 timeless lessons every trader should know:

🟡 Go back to first principles
Price shows intent. Volume shows conviction. When both align, the move is real. When they don’t, it’s manipulation or weakness.

🟡 Volume validates the truth of price
Rising prices on high volume show genuine strength. Rising prices on low volume often signal traps. Volume is your lie detector.

🟡 Keep it simple
Complex systems collapse in chaos. Simplicity endures. Price and volume already reflect human emotion — fear and greed — that never change.

🟡 Understand market cycles
Markets move in four stages: accumulation, markup, distribution, markdown. Know where you are, and you’ll know what to do — buy, hold, or exit.

🟡 Context over pattern
A candle pattern means nothing by itself. The same hammer can be bullish or bearish depending on where it appears. Always see the bigger structure.

🟡 Patience is an edge
Anyone can enter a trade. Few can hold it. Patience backed by volume confirmation separates traders from gamblers.

🟡 Adapt, don’t abandon
Markets evolve, but the principles of price and volume don’t. Adjust your tools, not your foundation.

🟡 The core principle
Price tells you what the market is doing. Volume tells you why.
That relationship — timeless, simple, and universal — is what ties every market together.

Trading clarity begins when you stop chasing indicators and start reading intent.

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