First of all, you must realise that the auction market theory is not a strategy; rather, it is merely a theory to keep in mind. It is essentially a framework that can be represented in two different ways: TPO graphs and VP graphs, for which I will create separate videos but right now I will be explaining basic AMT rules and scenarios with bell curves from VP.

Price always moves to find balance. If it moves out of balance, it’s in imbalance, and will either return to the old balance or create a new one.

The most simplified way of knowing how AMT works is that the market is in two stages either balance(fair value) or imbalance(Inefficiency).

Essentially, you want to use balance and imbalance areas as levels to play off with DOM or FP (entry triggers reason to place trade) and use them as dynamic support and resistance.

There are extremes in balances such as VAH,VAL and POC:

• POC (Point of Control): Price where the most trading happened (highest volume).
• VAH (Value Area High): Top boundary of where ~70% of volume occurred.
• VAL (Value Area Low): Bottom boundary of that same ~70% volume zone.

So:

POC = busiest price

VAH = top of value zone

VAL = bottom of value zone