Step by step
How to read it
- 1Friday’s close.
- 2Monday’s open — far above it.
- 3Nothing traded in between. A stop inside the gap fills at the first price after it.
Watch out
Common mistake
Treating a stop as a promised price. Across a gap it fills at the first available price.
In one line
Definition
A jump between one candle’s close and the next candle’s open, common after weekends and news.
Check yourself
Check yourself
You are short with a stop at 56. After the weekend price opens at 59. Where are you closed?