Trader Dale Volume Profile

Price Action
A failed auction would be if there were two people willing to pay, say $2000, and at this point,
the auction would end. This would be a failed auction because successful auction has only one
winner who gets the prize (for example the painting).
It is the same with trading. I will make it a bit simpler than it is, but still, the principle is the
same. In trading there always needs to be the “one last guy“ at the top (or bottom) of the
swing high/low. The last one to make the deal before the price turns and heads the other
way (and new auction in the other direction begins). See a picture below:
In the picture above there is a successful auction.
If the auction fails, however, then there are more people trading at the top (or bottom) of the
swing high/low. From this place, a new auction process starts in the other direction even
though the previous auction hasn't ended (it wasn't successful). This is a bit weird because
there wasn't the "one last guy" to make the last deal (the "winner" of the auction = the one
who gets the "painting"). So, there are few guys at the top of the swing point who are probably
ready to fight for the prize, but they don't get the opportunity. In this case, the auction has
failed because it doesn't have one winner.
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