Glossary · A
What is Auction Market Theory (AMT)?
A way of understanding markets as continuous two-sided auctions whose purpose is to facilitate trade: price moves to find buyers and sellers, alternates between balance and imbalance, and "advertises" prices until trade is accepted or rejected.
In context
AMT is a descriptive framework, not a forecasting formula. It tells you what the market is doing now: searching for new value, or rotating within current value. It does not tell you where the next price will be. Many popular statements associated with AMT ("price always comes back to fill X") have never been put through a proper statistical test.
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