The volume traded at the bid and the ask at the extreme of a bar provides strong insight to supply and demand at this price level. As mentioned with the Single Print at Extreme indicator, at the end of a move, we would expect to see low volume as the market has run out of buyers or sellers at this price level. If we find that there is volume traded at the bid and the ask at the extreme of a bar, i.e. at this price there are both buyers and sellers, we refer to this situation as Unfinished Business – we have a price where both buyers and sellers wish to trade. It is likely therefore that this price will be revisited and the market will explore higher or lower until such point as we run out of buyers or sellers.
The Unfinished Business price level allows us to determine a near-term price target once price has moved away from the price level as well as look for possible entries at prices beyond the Unfinished Business price level in the knowledge that beyond this price level, we will at some point run out of buyers or sellers.
Unfinished Business at significant price levels during the day, e.g. Daily High/Low, Initial Balance High/Low allow us to consider trades with defined price targets and therefore favourable risk/reward ratios. A user-definable lookback period allows for filtering of Unfinished Business conditions within swing highs and lows.
Unfinished Business may be licensed for Sierra Chart on a Lifetime, 1-month or 3-month basis, or as part of the complete Emoji Trading Order Flow Suite. Licences include all indicator updates and enhancements during the license period.