Order Flow pattern – Unfinished Business
Unfinished business is one of the basic order flow patterns. It is also very easy for recognition when you use tradeWinger Order Flow Chart. There is even special green/red cirle on exact price level indication included.
What is unfinished business?
In market theory, it is the situation where there is imbalance in market auction between buyers and seller on highest or lowest price level on the current block of order flow chart.
What does it mean unfinished business market auction imbalance and how does it look?
It is the moment where there are still active buyers and sellers on the same price level, but price of the market moves quickly away to another price level and rest of the traders willing to buy and sell on this exact price level remain unexecuted. This is the principle why unfinished business price levels work like a strong magnet for the future price movement – large traders and market effectivity rules are the main powers that move the price back to unfinished businesses levels and fill all unfinished business levels in the future.
How does this pattern look on the real market situation?
Let’s take a look at today’s example on the DAX futures market – FDAX. As you can notice, unfinished business in order flow column on local high or low with non zero number on both bid and ask side, in this exact example it is 1×23. On the other side, finished business is local high and low columns with zero number on bid or ask side, for example 18×0. You can see, how price and even whole market value area was attracted by unfinished business and market bounced back and filled this price level very effectively.