The PaintBarTrading Auction Map is built around market-generated information, value structure, overnight inventory, and institutional execution references. These levels help identify whether the market is rotational, responsive, or transitioning into directional auction.
Core Auction Levels
| Level | Meaning | PaintBarTrading Interpretation |
|---|---|---|
| ONH | Overnight High | Acceptance above ONH often signals initiative buying and continuation auction. |
| ONL | Overnight Low | Failure below ONL can trigger liquidation and directional expansion lower. |
| VAH | Value Area High | Upper edge of value where sellers may respond if price is rejected. |
| VAL | Value Area Low | Lower edge of value where buyers may defend auction. |
| POC | Point of Control | Highest traded volume area; often acts as a magnet during rotational trade. |
| OVN VWAP | Overnight VWAP | Institutional average overnight price used for inventory positioning and bias. |
| Prev Hi | Previous Day High | Important liquidity reference and breakout location. |
| Prev Lo | Previous Day Low | Major downside liquidity and support reference. |
| Prev Cl | Previous Close | Key inventory and gap reference used by institutions. |
| Last | Current Market Price | Real-time auction location relative to value and inventory. |
| Net Chg | Net Change | Measures directional strength relative to previous close. |
How I Read the Auction
Markets constantly rotate between balance and imbalance.
Acceptance above value suggests buyers are willing to conduct business at higher prices. Rejection from value often returns the market into rotational trade.
Overnight inventory, VWAP positioning, and value migration help determine whether the auction is responsive or initiative-driven.
Key Concepts
Acceptance
Price holding above or below an important reference level, showing willingness to conduct business there.
Rejection
Failure to hold an area, often leading to rotation back toward value.
Responsive Activity
Counter-move reactions from traders fading extremes back into value.
Initiative Activity
Aggressive directional participation seeking price discovery outside value.
Rotational Auction
Two-sided trade around value with balanced participation.
Directional Auction
Imbalance-driven movement where one side controls the auction.