What is Auction Market Theory? #

Auction Market Theory is a gift to us traders from Peter Steidlmayer. He was a member of Chicago Board Of Trade and there he developed for the first time CBOT Market Profile. This is what he is famous for, but little do traders know about his real contribution to the world of trading.

Its not Market Profile… #

Yes, its not market profile but the underlying philosophy of market profile and for that matter any transaction that ever took place in this world, auction theory.

What is Auction Theory? #

It is a simple application of the auction theory to the markets. It is very simple and its simplicity often fools traders about its usefulness. I myself disregarded it in the beginning until AI realised its true potential.

What are Auction Market Theory Statements? #

There are only two of them and yet they cover the entire markets, fascinating isn’t it.

Market goes up to find sellers. #

Market goes down to find buyers. #

That’s it and yet it is all-encompassing. You will have to understand that this is better understood with real-life examples and there are a ton of that covered in the course video on this topic.

To understand the strength of this theory you must realise that the powerful tools like market profile, order flow and VSA are based on this theory only.

The more you study it in real-world the more examples you find and the more you realise that it is at the base of every transaction that ever took place. This is a fascinating topic to learn and I cant wait to share it with you…

Book Recomendations #

There is much more to this topic of trading and we cover it in great detail in the DTF Membership. So if you are curious and want to bring consistent profitability in your trading consider subscribing to our quarterly membership…

Enrol for a free masterclass on DTF Membership. You will learn all about the membership here, answers to common questions like…

  • What topics are included in the membership?
  • How is the content delivered?
  • How the queries and questions are handled?
  • How long will you have access to the content?
  • What happens when your membership expires?
  • What about the new content that is added during your membership?
  • And many many more…

Click here to ask your questions… #