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.
In the example a buy stop pending was put to open a buy at a price level above ruling price.
The price then went upward to hit buy stop order, and afterwards the price continued to move upward.
Placing a Buy Stop Order above a Resistance Area
Placing a Buy Stopabove a Price Consolidation
A buy signal was derived and generated from the above pending stop order setups, when price broke a resistance zone in the first example illustration and when there was an upward breakout of prices after the price consolidation chart pattern in the second example.
Sell Stop
An example of a sell stop order is shown below.
In the example a sell stop pending was set to open a sell trade at a price below the ruling price.
The price then went downwards to hit the sell stop order, and afterwards price continued to move downward.
Placing a Sell Stopbelow a Resistance Area
Placing a Sell Stop Order below a Price Consolidation
A sell was derived/generated from the above pending stop order set-ups, when price broke a support zone in the first example illustration and when there was a downward breakout of prices after the price consolidation chart pattern in the second example.
How to differentiate between stop orders and limit orders
It is easier to first remember one concept. The easier concept is that of Stop Orders - stop orders are set above and below the 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: Choose Pending order like is shown belowStep 2: Select Pending Order Menu as Show belowStep 3: Select Buy Stop or Sell StopStep 4: Click "Place" Order
Steps to Setting Buy Stop or Sell Stop Orders on MT4 Platform Software
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