Unfinished Auction in Bund

Unfinished Auction in Bund

One of the unique patterns evident when using Footprint charts is the unfinished auction pattern. This pattern is best viewed using the bid x ask footprint or imbalance footprint and is present at:

  • highest price of a bar
  • lowest price of a bar
  • both

and when that price contains volume on both the buy and sell side. It is easiest to understand when looking at a chart. The first 2 arrows show the pattern present. The 3rd arrow does not exhibit the pattern because there is no volume left of the "x".

INTERPRETATION

When this pattern is present the market hasn't yet exhausted itself and buyers and sellers are still present. When this pattern occurs, the expectation is for the market to retest that price level rather soon (30 mins or so).  Some traders apply different time parameters to the re-test but 30 mins is a good rule of thumb.

This chart was of the Bund (symbol = DB in MarketDelta) and is the continuation of the zoomed in view above.

RULES OF THUMB

When the market is testing highs or trending higher, focus more on the high price of the bar for this pattern.

When the market is testing lows or trending lower, focus more on the low price of the bar for this pattern.

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