Unfinished Auction for YM Futures: Capturing
It's 9:30 AM Eastern Time. The Dow Jones futures (YM) have just tested a key resistance level, but price quickly reversed before making a new high. This...
It's 9:30 AM Eastern Time. The Dow Jones futures (YM) have just tested a key resistance level, but price quickly reversed before making a new high. This isn't a failed breakout—it's an unfinished auction, and the market is about to reward those who recognized the imbalance. While most traders chase the obvious breakout, the real opportunity lies in understanding what happens when price fails to complete the auction process. Unfinished Auction is a price level where both buying and selling volumes remain active at a bar's high or low without full resolution. It signals potential revisits as price seeks to complete the auction process. This concept, rooted in Auction Market Theory, reveals when the market hasn't yet established fair value at a particular price point. According to Source 11, "The Unfinished Auction indicator spots incomplete price auctions at bar highs or lows, so you can see potential reversals or continuations in futures contracts.