Auction Market Theory (AMT) views the market as a continuous auction where price moves to facilitate agreement between buyers and sellers, seeking a level of fair value. The core mechanic is the alternation between balance, where price is accepted and rotates within a range, and imbalance, where price moves directionally to discover a new value area when agreement breaks down. Volume and time spent at price help define where the market finds acceptance versus rejection, guiding expectations for whether price is likely to continue moving or revert. As a strategy, AMT is about interpreting this auction process, identifying whether the market is accepting or rejecting prices, and aligning trades with the underlying shift between equilibrium and expansion rather than reacting to price movements in isolation.