Module 1 · The Auction
Price vs Value
Fair value is a zone the auction returns to — not a single number.
In this lesson you'll
- Distinguish price (a number now) from value (a zone)
- Define fair value via the profile
- Use the away-from / return-to-value behavior
Price is a single number, right now. Value is a zone the auction keeps returning to. Confusing the two is the most common beginner mistake. Price constantly leaves value to advertise; the skill is judging whether it will be pulled back (balance) or whether it's discovering new value (trend).
Key takeaways
- Price = a single number now; value = the zone the auction returns to.
- Fair value = where the most business is done with least disagreement.
- Price leaves value to advertise; judge revert (balance) vs discover (trend).
- Don't confuse a price spike with a shift in value.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: They are distinct — price moves through and around value.
Why that's off: Value can be above or below current price.
Why that's off: The POC is part of value, but price is the moving number, not the POC.
Price is the instantaneous number; value is the region (POC + value area) the auction keeps returning to. Separating them is fundamental.
Why that's off: A quick wick that returns is not value migration.
Why that's off: No acceptance = not a confirmed trend.
Why that's off: Whether value migrates is the central question here.
A wick that snaps back means price advertised higher prices but the auction didn't accept them (value didn't migrate). Expect a potential return to value rather than a confirmed trend.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.