Auction Market Theory (AMT) views markets as a continuous two-sided auction seeking prices where trade can be facilitated. The Auction Room Bangladesh teaches AMT as a framework for describing market behavior, not a promise that any level must hold.
The auction process
When participants agree that a price is fair enough to transact, volume builds and trade is facilitated. When one side is unwilling to transact at a price, the auction may move to discover another area of interest. Price discovery is dynamic; a market can remain imbalanced longer than expected.
Balance, imbalance and value
Balance is often associated with overlapping trade and rotation. Imbalance features directional discovery and shifting acceptance. A value area is a chosen percentage of traded volume or time, commonly 70%, and is a descriptive statistic rather than a guaranteed support or resistance boundary.
Acceptance versus rejection
Acceptance can be inferred from sustained trade and time at a new price region. Rejection may be suggested by a quick probe and return, but the timeframe and session matter. One wick is not sufficient proof of institutional rejection.
POC and value migration
The Point of Control (POC) is the price with the highest volume in a chosen profile, or the most TPOs in a TPO profile. Comparing session POCs and value areas can reveal whether perceived fair value is migrating higher, lower or remaining stable.
D-, P- and b-shaped profiles
A D-shaped distribution often accompanies two-sided balance. A P-shaped distribution can reflect upper distribution after directional movement; a b-shaped profile can reflect lower distribution. Shapes are context clues, not deterministic continuation or reversal patterns.
Example: failed auction above value
Imagine GC moves above the previous session’s VAH but cannot establish sustained trade there. A return inside value may favor rotational hypotheses, subject to session structure and confirmation. Risk is defined by a level that would invalidate the rejection thesis.
How AMT connects to order flow
AMT identifies where the market is auctioning and where acceptance might matter. Footprint, delta and volume profile help evaluate who is participating at those locations. The strongest analysis separates market context from the execution trigger.
A practical study routine
Mark prior session VAH, VAL and POC, record the opening location, track whether value shifts, then review examples of acceptance and rejection. Use replay and a journal to test whether an interpretation was useful, including losing examples.
Frequently asked questions
Is Auction Market Theory the same as ICT or SMC?
No. AMT centers on price discovery, auction balance, value and participation. Traders may use overlapping vocabulary, but the analytical framework differs.
Is POC always a magnet for price?
No. POC is a descriptive statistic; directional markets can move away from it and never revisit during a session.
Can AMT be used on gold futures?
Yes. GC futures provide volume-based auction information, subject to contract selection, trading session and data quality.