That's normal.
You have three values basically, that control pricing.
And a fourth which modifies the maximum, depending on the setting.

One of them is your maximum price, which it will list at if no one else is listing that item.
The next is the undercut value, which is how much lower then someone else it will post at, assuming they're cheaper then your maximum price, but your undercut is still above your minimum price.
Then we set a minimum price, which is the lowest you will possibly consider ever posting an auction at.

These are your three main values for pricing.

You have a check box ticked (I do too), to revert to your fallback price (your maximum price), if the market is currently below your minimum price.
For example, I will not list cut epic gems for less then 125 gold. Which means, when the auction house includes Bold Cardinal Rubies at 97g34s, QA automatically lists mine at 189g (my current maximum price).
I try to have one of every cut (I can do) on the AH constantly, and a quarter of my auctions are at fall-back prices because the threshold is too low.

With Cancel, gather the auctions from the mailbox, and Post, I'll frequently have everything that is below my minimum bought out, and some of my 189g auctions will then repost at say 156g or whatever.

You just need to set your max, min and undercut values, for each category of item.
Then add the item to that category, so it can be posted/canceled.

The last value that can modify your price, is towards the bottom of the options.
Basically, if the only auctions are above your maximum, how much higher then your maximum are you willing to go? I will go as much as 20% over my maximum, beyond that I don't see anyone buying gems... so what is the point at listing at such a high value?