Incomplete Auction
Order Flow Analysis glossary · Market Mechanics & Execution
Definition
The condition behind unfinished business: at a bar's extreme the auction did not fully resolve because one side never transacted at the next tick beyond it. At a high, the market was bid but no aggressive buyer lifted the offer one tick above; at a low, the offer was hit but no aggressive seller hit the bid one tick below. The market tends to probe back to the level — and through it — to give the missing side a chance to transact and complete the auction.
Incomplete Auction in plain English
This is the mechanism that creates "unfinished business," and it starts with seeing the market as an auction: price rises until buyers refuse to pay more, and falls until sellers refuse to accept less. An incomplete auction is when that refusal never got fully tested — at a high, buyers were still bidding but nobody aggressively paid up one tick higher; at a low, sellers were hitting but nobody aggressively sold one tick lower. Because one side never got its turn, the market tends to drift back to that price — and usually pushes a little past it — to give the missing side a chance to trade and settle the argument. It's like an unanswered question the market circles back to finish.
Learn these first
Related Order Flow Analysis terms
Order Flow Analysis practice questions · Order Flow Analysis flashcards · Order Flow Analysis study guide