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Stop run

Technical Analysis

A brief move past a level that triggers resting stops, then back — separating what a chart shows from the intent the name attributes to it.

A stop run is a name for a brief move past a level, far enough that protective instructions resting just beyond it would be triggered, followed by a move back inside. The chart shows the move; the name adds an account of why it happened, namely that the resting instructions themselves were the point. That second part is an interpretation, and it is not something a chart can establish — a chart records prices, not who traded or what they intended. The observable half is ordinary enough. Protective instructions cluster just beyond levels people can name, triggering them produces orders in the direction of the move, and orders in the direction of a move extend it, all of which can happen without anyone setting out to cause it. Where a reader believes an individual order of theirs was handled improperly rather than merely filled at an unwelcome price, that is a question for the broker's complaints procedure and its regulator, and it is answered from execution records rather than from a chart.

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After Stop run