Join Bill Duryea, founder of the Institute of Auction Market Theory (IOAMT), for this live online session outlining the auction process by which a market finds the price for a stock or commodity.

Price discovery can occur in open-outcry trading on an exchange floor or it can be determined through electronic trading systems. As the auction process develops over time, price can either consolidate within a narrowly defined range or move directional to a new level.

View Presentation Full Screen

In a dynamic market, the price discovery takes place continuously. The price will sometimes fall below the duration average and sometimes exceed the average as a result of the noise due to uncertainties. The price would fluctuate between the support and resistance levels, which are associated with the end of the expectation spectrum.

Price discovery helps find the “fair value price” for a commodity, i.e. the areas where the majority 68% of the daily volume is transacted, above and below the daily mean, the markets common price level.

William Duryea is the founder of the Institute Of Auction Market Theory and a professional trader of the ES for over 12 years. He has conducted seminars nationwide teaching Market Profile. He has been a guest speaker of the CME, CBOT, ICE, Denver Trading Group and a regular featured speaker at industry tradeshows. To learn more about IOAMT and to hear Bill moderate and trade the S&P500 daily in our Live Trading room, visit IOAMT.com

This website is for educational purposes only. Futures, options, and spot currency trading have large potential risk and traders should be well-educated before putting real money at risk. You must be aware of the risks and willing to accept them in order to invest in all markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to buy/sell a futures contract or currency.