Entry Stop Orders Forex Orders
These are orders to buy above the market or to sell below the market.
- Buy Stop Order
An order to buy at a level above the market price.
- Sell Stop Order
An order to sell at a level below the market price.
Buy Entry and Sell Entry
These orders are used by traders wanting to trade a setup like the consolidation but they do not want to wait and watch the prices all day long until there is a price breakout. Therefore traders will set these orders above and below the price and a breakout in any of these direction will execute one of these orders and a buy trade or a sell trade will automatically be opened.
Buy Stop Order
In the examples below a buy stop order was placed to buy at a level above the current market price.
The price then went up to hit the order, and afterwards price continued to move upwards.
Setting Buy Stop Order above Resistance Level
Setting Buy Stop Order in a Forex Breakout
A Buy was generated from the above order when the price broke a resistance line in the first example and when there was an upward breakout after a market consolidation.
Sell Stop Order
In the example below a sell stop order was placed to sell at a level below the current market price.
The price then went down to hit the order, and afterwards the downwards move continued
Setting a Sell Stop Order Below a Support Level
Pending Sell Order Set in a Price Breakout
A Sell was generated from the above order after support line is broken after a consolidation.
How to differentiate between stop orders and limit orders
It is easier to first of all remember one concept. The easier concept is that of Stop Orders are set above and below the price.
In the mean time Download MetaTrader 4 platform and practice setting these orders on a Practice Demo Account.
Setting Buy and Sell Stop Orders on Metatrader4 Platform
Open a Trading Chart, Right Click on the Chart, Select New Order, then Follow the steps below
Step1: Select Pending order as shown below
Step2: Select Pending order Menu as Show below
Step3: Select Buy Stop or Sell Stop
Step4: Click "Place" Order
Steps to Setting These Orders on Metatrader4 Platform