Identify the event that activates the instruction
The sell stop considered here becomes a market order when its trigger is reached. A stop-limit becomes a limit order: a sale is allowed only at its limit or higher. These constrain different things rather than guaranteeing the same outcome.
A firm or venue may trigger from last sales or quotations and impose its own operating hours. The SEC/FINRA sources concern US stocks; similar names do not establish identical mechanics for every instrument.
Price jumps past the 98 threshold
The previous teaching price is 100. Set the sell stop at 98; the next qualifying observation is 95, which activates it under our assumption. The model supplies no intervening executable price of 98. Assume ten units subsequently fill at 94.75. This is an assumed fill, not a guaranteed quote.
The difference from the trigger is 98 − 94.75 = 3.25 per unit, or 32.50 for ten. This measures execution against a trigger, not the complete trade loss: no purchase price is given. Commission is zero.
| Event | Price |
|---|---|
| Previous observation | 100.00 |
| Stop threshold | 98.00 |
| Next observation: activation | 95.00 |
| Assumed market execution | 94.75 |
Why the stop-limit may remain unfilled
Add a sell limit of 97.50 to the same stop of 98. Observation 95 activates the limit order, but selling at 95 or 94.75 is outside its permitted price. Without suitable buying interest at 97.50 or higher, nothing fills.
A later recovery would still leave queue position, quantity, duration and order status to check. The position remains open in this snapshot; its eventual exit and price are unknown.
| Instruction | After activation | Outcome in the teaching snapshot |
|---|---|---|
| Stop | Market | 10 units at 94.75 under the stated assumptions |
| Stop-limit 98 / 97.50 | Sell limit at 97.50 or higher | 0 filled; 10 remain if still active |
What the example does not establish
A gap need not have this size. A halt can delay execution and quantity may fill only partly. A stop does not guarantee a maximum monetary loss. A stop-limit constrains acceptable execution prices without guaranteeing an exit. A candle alone does not establish a broker order’s status.
Keep three different fields
Record activation condition, price boundary and actual fills separately. Historical closed bars help study observations but cannot reconstruct every available order. Student Wyckoff does not submit exchange orders.
- Check trigger rules, hours and duration with the intermediary.
- Do not record the stop threshold as the actual exit price.
- Retain unfilled quantities and unknown outcomes.
Primary sources
Sources explain the mechanics and limitations; the editorial examples use invented numbers rather than market quotations.
Your next practical step
Student Wyckoff Pro helps you study closed bars and save your analysis. It does not execute trades; access and the Windows connection are explained in the guide.
Open the first-chart instructions ↗