Lesson / WY-A-1
An exchange's continuous double auction is a set of rules bringing buying and selling intentions together. Participants simultaneously submit bid prices, offer prices, and quantities. Limit intentions that do not immediately execute and whose instructions allow waiting enter the book; marketable instructions consume available opposing quantities. A trade occurs only when a buyer accepts an offer and a seller agrees to sell there. A transaction price therefore first represents the terms of exchange agreed then, not an instrument measuring an asset's true value. Aggressive buying consuming the best offer, sellers withdrawing quotes, or sellers raising quotes can all make the next trade higher. Price movement alone cannot distinguish the mechanism or identify participants.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
6 lessons · Chapter contents
01I. Understanding Trade Location Through the Auction Process↗02II. Sample Scope and Calculation Methods↗03III. Calculating POC, Value Area, and Nodes↗04IV. Profile Shape Describes Results Only↗05V. Integrating Profile with Wyckoff Structure↗06VI. Four Common Trading Scenarios↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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