Excess - Trading Glossary

Excess indicates the end of one auction and the start of a new auction. It is visible through buy-ing and selling tails (single TPO prints). Excess occurs in all timeframes; it completes an auction. There are always multiple two-way auctions at work; one could be completed while another is still active. As was previously mentioned, balance and excess are the two most important concepts you will be introduced to because they show change or the possibility for change to take place.

This is a trading glossary term series of blog posts. You can take a look at all the terms we post with the Trading Glossary label.

Also, visit our Trading Community to learn more about our indepth top down analysis process and trading methodology based on the auction market theory and other closely related nuances.