Auction Market Theory + Anchored VWAP + Failed Auction — Complete Framework

Most traders chase indicators. Professionals read the auction.
1️⃣ Auction Market Theory (AMT)
Markets rotate between balance (acceptance, fair value, rotation) and imbalance (aggressive expansion).
70–80% of the time price is in balance.
The longer the compression → the more violent the expansion.
2️⃣ Anchored VWAP
Anchor to a key event (swing high/low, breakout, major news).
It tracks the true average price from that moment.
Above = buyers in control.
Below = sellers in control.
It’s the real line in the sand.
3️⃣ Failed Auction
When price breaks value but can’t gain acceptance → rejection.
Low follow-through + sharp return to balance = exhaustion.
Failed auctions often fuel strong moves the opposite way.
AMT explains behavior.
Anchored VWAP shows control.
Failed auctions reveal opportunity.
This isn’t indicator trading. It’s understanding the auction.