The moment is ringed. An invented chart, drawn to show the shape. Not market data.
Also searched asweekend gap forex · gap past stop loss · gapping market · stop loss slippage
What you see
- The new candle opens away from the last close, leaving empty space on the chart.
- Common at the weekly open, around major releases and in thin hours.
- A stop-loss inside the gap cannot be filled at its own price, because no trade took place there.
Why it happens
A stop-loss is an instruction to close at the next available price once a level is reached. If the market jumps past the level, the next available price is on the far side of the gap. The difference is slippage, and it can be large.
What traders check next
- Whether a position needs to be open over the weekend or the release at all.
- The size: a smaller position turns the same gap into a smaller loss.
- The account’s terms on negative balances and on how stops are filled, which are in the order execution policy.
Where people go wrong
- Assuming a stop guarantees its price. An ordinary stop does not.
- Sizing a position by the distance to the stop alone, as if a gap could not exceed it.
- Holding the largest position of the week into the close on Friday.
Questions people ask
- Will my stop-loss protect me in a gap?
- It will close the position, but at the first price available after the gap, which may be worse than the stop price.
- Can gaps be predicted?
- The times when they are likely can: weekends, holidays and scheduled releases. Their direction and size cannot.
The words on this page
An explanation for study. It is not advice, a recommendation or a forecast, and a pattern or a situation described here says nothing certain about what a price will do next.