Auction Market Theory on TradingView: Acceptance, Rejection and Evidence

What counts as evidence of acceptance or rejection?

Acceptance means sustained participation around a price area in the selected context. Rejection describes an attempted move that fails to sustain activity and returns away from that area. A single wick supplies only one part of this story. The time horizon matters: an intraday move can occur inside a larger weekly balance.

Set up a consistent TradingView observation

Use regular time-based candles to preserve the sequence of closes, then inspect TPO or Volume Profile for the same symbol and session. TradingView TPO marks price rows visited within each time block; it does not measure the exact seconds spent at a price. Volume Profile summarizes supplied volume across price rows. Neither display reveals the intentions of individual participants.

• Record the exchange-qualified symbol, timezone, session hours, candle interval, profile period, block size, and row size. Keep these settings fixed during the exercise.
• Use the completed reference session or a fixed earlier range. Save its boundaries before observing the next session; do not replace them with the final developing profile.
• For TPO, split the profile by blocks when you need the order of visits. A completed combined profile alone can hide which area was visited first.
• For volume, use a fixed start and end. A visible-range profile can change when you scroll or zoom, which changes the comparison.

Write the hypothesis before the first break

The following is an invented exercise in price points and volume units, not a market replay or a trading recommendation. Assume an earlier session repeatedly rotated between 100 and 104. Freeze 104 as the upper boundary. Observe the next six completed 5-minute bars after the first break above 104, including the breakout bar. This is a fixed 30-minute window.

• The 3-close, 60%, and 40% thresholds are assumptions for this exercise, not established AMT constants or optimized settings.
• A close exactly at 104 is neither above nor below for the close rules. Volume at 104 belongs to the upper bucket by definition.
• Count closed bars as a sampling proxy. Three closes above a level do not prove that every trade during those 15 minutes occurred above it.

Compare two paths through the same boundary

Both hypothetical paths first close above 104. All figures cover only the fixed six-bar window. Assume the volume rows align with 104, and every volume unit is assigned to exactly one bucket. These assumptions let the arithmetic be checked without pretending to have exchange tick records.

• At the first close, both paths are unresolved. Path A returns below on bar 2, but its full classification still waits for the window volume and final close.
• Path B has three closes above by bar 3. Calling the full rule confirmed there would use volume from bars 4 through 6 before it exists.
• If a profile row straddles 104, its full volume cannot be assigned to either bucket exactly. Use suitable aligned rows or record that the volume condition cannot be evaluated.

Test the interpretation after the window closes

Predeclare a separate follow-up window of the next six 5-minute bars. For Path B, define a held retest as a later bar trading down to 104 and closing above it, with no subsequent close below 104 before the follow-up window ends. A hypothetical low of 104 and close of 104.25 begins that check; the remaining bars are still needed.

• A close below 104 during the follow-up invalidates this held-retest hypothesis. Preserve the original acceptance observation and record the later failure instead of rewriting the earlier label.
• If price never revisits 104, record no retest. A move higher without a revisit does not establish how the boundary would behave on contact.
• For Path A, watch the same follow-up window for three consecutive closes back above 104. If they occur, record a renewed attempt; the earlier rejection did not forbid another auction.
• The classifications describe chart behavior. An entry, protective exit, position size, fees, and slippage require a separate strategy specification before any profitability test.

Where this interpretation can fail

Profiles describe the data and window selected. Changing the session or using unavailable history can alter the apparent balance. Jim Dalton also cautions that assumptions and new information can invalidate prior probability judgments; an auction label is not a permanent property of the market.

• TradingView uses tick volume for some instruments, including forex and indices. Price-update counts are not a consolidated count of traded contracts. Record the supplied volume type before comparing activity.
• Volume Profile uses lower-timeframe data. Its up/down allocation does not identify buyer intent, seller intent, or institutional ownership.
• A long pause with little volume and a fast move with heavy volume can disagree on acceptance. Preserve the disagreement instead of selecting whichever measure supports the preferred direction.
• Do not classify zero or missing total volume as 0% acceptance. A zero denominator is undefined; missing observations are unavailable.
• A news release or a different session can begin a new auction context. Keep the old record and specify a new reference rather than moving the boundary to rescue a hypothesis.

Turn the observable parts into alerts and journal records

Pineify Pine Script AI Coding Agent can help draft chart aids from explicit requirements. For this exercise, specify a manual reference boundary, session reset, confirmed-close counter, and one notification when the chosen close condition first passes. Keep the volume condition separate until its data source and price-row calculation are verified. A close-count alert alone must be labeled as a price observation.

• Use Trading Journal notes and tags to keep the hypothesis beside the review. Trade screenshots depend on account entitlement; retain the image files separately if that feature is unavailable.
• For a skipped setup, use session notes rather than inventing a trade fill. Record the failure cases as well as the examples that fit.
• Review generated code and compare its timestamps against the manual record. Pineify does not supply missing market data or make a hindsight label available earlier.