Analyzes any and all financial markets looking for signs that denote the potential existence of Un-Filled Orders (to either buy or sell).
Plots buy and sell “UFOs” on price charts (shaped as round flying saucers). Traders use them to define entries, stops and targets with great precision. Traders often combine other techniques (Fibs, Support/Resistance, Technical Indicators, Moving Averages, Bollinger Bands®, Technical Analysis, Fundamental Analysis/Value Investing, etc.) and make sure their entries and exits coincide with a UFO on the chart to potentially add odds to their trade ideas.
Is also used by large commercial companies looking to hedge the currencies, commodities and more they use in such businesses.
In case you haven’t guessed, UFO is the acronym for Un-Filled Orders...