[bojangle]

I don't really know a lot about price discovery and auction market theory, but i really want to learn about it. From what i understand is that price is always moving until it can find two-sided trading. It will test level after level to find it. I plan on posting charts in here starting tonight. I appreciate all the help i can get from experienced traders. Thanks.

[bojangle]

What levels will price test? most accepted and most rejected areas of the past daily profiles would seem likely, just because they are the most obvious ones. so here is a chart with the most accepted and most rejected prices from monday's regular hours trading sessions. i see that price goes from one level to the next, but i don't know why... there must be a simple way to state what is happening. can someone give me some input? thanks.

[bojangle]

Levels for tomorrow's trading. Plotted the most impressive ones, but some high volume levels are not plotted and could stop price i guess, so i have to keep an eye on them.

[StevenSJC]

It has always amazed me over the years of trading and observing how often markets reverse, pause, oscillate around these various key levels. Obviously there's a massive group think/psychology at work. Meaning hundreds/thousands (?) of other people trading the market have marked the same levels or close -- and it becomes a self-fulfilling prophecy.

It's why still to this day I'm paranoid about entering just ahead of big round numbers, or other key numbers in the markets I trade because still, despite all the thousands of trades running across they still respect them.

Of course, they all eventually break - in seconds, in minutes, in days -- but there's definitely opportunity working around them.

I'll look forward to seeing more from you.

[ant]

Increase your timeframe and observe longer term (more reliable) references. These are the references where multiple timeframes get involved, not just day traders. Translation: Bigger Opportunities.

[chulaihuey]

Thanks for starting this topic. I am trying to learn Auction Market Theory as well, so I cannot add much right now.
I am reading Auction Market Theory now as an introduction and to better understand it.
I look forward to posts in this thread and will add if and when I feel I have something useful to contribute.

[bojangle]

I'm not seeing much reliability in the day timeframe's levels. I don't know what i'm missing or what... i can't figure it out. maybe i should look for price areas that are more important to the longer-term traders who actually drive the market... but how? finding volume levels based on a time period doesn't seem right... anyone have any suggestions? thanks.

[tastypaint]

the time frame to look at is days of overlapping value. the nodes with the most volume are your s\r areas.