News candle

### What is actually happening inside that candle The thing that vanishes at the release is not price, it is **liquidity**. In the seconds around a number, the firms quoting both sides step back rather than get run over by information they do not have yet. Spreads widen, resting orders thin out, and the order book that your structure was drawn on top of stops existing. That is why the damage is not just directional. OANDA's execution guidance is blunt about it: high-impact releases such as non-farm payrolls and CPI are a primary cause of slippage, and a stop-loss triggered in a fast market or a liquidity gap *effectively becomes a market order*, filling at the next available price. Price can skip your level entirely. Your stop is a request, not a guarantee. ### Why the candle wicks both ways Structure is really a map of where other people's orders are resting. The spike runs into both maps at once. Stops above get taken, stops below get taken, and only then does the market start pricing what the number actually meant. The first move out of the release is not a reliable read on where price settles once the number has been digested. ### The rule this term exists to justify **WE DO NOT GAMBLE NEWS.** No setups in the 2 hours before a red-folder event, none during it. Wait 1 hour after before you resume. The point is not that you cannot guess the number. The point is that even a correct guess can be executed at a price you never agreed to. ### The mistake beginners make They treat this as a distance problem and widen the stop. A wider stop is simply a bigger loss when it slips. The others: assuming a strong number means a higher price (positioning versus expectation decides that, not the headline), and assuming a limit order or a smaller size makes the window safe. The exposure is the problem, not the order type.