Buy Stop Order and Sell Stop
These are orders to buy above market price or sell below market price
Buy StopAn order to open a buy at a price level above ruling price
Sell Stop An order to open sell at a price below the ruling price
Buy Stop Order & Sell Stop
These stop orders are used by traders that want to trade a setup like the consolidation chart pattern, but they don't want to wait all day watching the prices of XAUUSD until there is a price break-out. Hence, these traders will use these orders to set pending orders above & below the consolidating prices and a price break-out in any of the direction will execute one of these pending orders & a buy trade position or a sell trade position will be automatically opened.
Buy Stop
An example of a buy stop order is shown below.
The example illustrates setting a buy stop pending order intended to open a purchase transaction at a price level situated above the prevailing market rate.
The rate then went upward to hit buy prevent order, & afterwards rate endured to move upward.
Placing a Buy Stop Order above a Resistance Area
Placing a Buy Stopabove a Price Consolidation
When the price went past a point of resistance in the first picture and when prices went up after forming a pattern of consolidation in the second picture, a signal to buy was made from the stop orders that were waiting.
Sell Stop
An example of a sell stop order is shown below.
In the example, a sell stop pending order was established to initiate a sell trade at a price below the current price.
The price subsequently declined to reach the sell stop order, and thereafter, the price continued to move downward.
Placing a Sell Stopbelow a Resistance Area
Placing a Sell Stop Order below a Price Consolidation
A sell signal came from the earlier pending stop orders. In the first example, price broke through a support zone. In the second, a downward breakout followed a period of price consolidation.
How to differentiate between stop orders and limit orders
It's easier to remember just one thing at first. Start with stop orders - they're set above or below the current price.
Setting Buy & Sell Stop Orders in MT4 Platform Software
Open a Gold Trading Chart, Right Click on the Chart, Select New Order, & then follow the steps explained below:
Step 1: Pick the type of order that waits to be filled, like you see below. Step 2: Choose the menu for orders that wait to be filled, as shown below. Step 3: Pick either Buy Stop or Sell Stop. Step 4: Click the "Place" button.
Steps for Establishing Buy Stop or Sell Stop Orders on the MT4 Platform Software
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