You will want to set them up according to your own realm. Ok so we now have quite a few options but they are pretty easy to understand.
The final forth arrow (red) states "Your auction has not been undercut", which is exactly what you want, means you are the cheapest on the AH! You can change the behaviour of this setting in your group override.
The third arrow (yellow) states "Not cancelling auction below threshold.", this means the item that has undercut you, is cheaper than you have specified in your threshold for that item, therefor TSM will not undercut it and will leave your current auction up (although it has been undercut). The second arrow (green) states "Cancelling auction which you've undercut", this means you have undercut someone who has undercut you (tongue twister!), therefor TSM will cancel your originally undercut auction. The first arrow (pink) states "You've been undercut", this means someone has undercut you and TSM is going to cancel that auction to repost later. The information stated can be any of the following: At the top it will list how many auctions it wants to cancel according to your settings.
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