Buy Stop Order and Sell Stop
These are orders to buy above market price or sell below market price
Buy StopAn order to buy at a level above ruling price
Sell Stop An order to sell at a level below the ruling price
Buy Stop Order & Sell Stop
These stop orders are used by traders who 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 and a buy trade or a sell trade will automatically be opened.
Buy Stop
An example of a buy stop order is illustrated below.
In the example a buy stop pending was placed to buy at a level above ruling price.
The price then went upward to hit the buy stop order, and afterwards price continued to move upwards.
Placing a Buy StopOrder above a Resistance Area
Placing a Buy Stopabove a Price Consolidation
A buy was generated from the above stop order setups, when price broke a resistance zone in the first example 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 illustrated below.
In the example a sell stop pending was placed to sell at a level below the ruling price.
The price then went downwards to hit the sell stop order, and afterwards price continued to move downwards.
Placing a Sell Stopbelow a Resistance Area
Placing a Sell StopOrder below a Price Consolidation
A sell was generated from the above stop order set-ups, when price broke a support zone in the first example 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 & limit orders
It is easier to first of all 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 on MetaTrader4 Platform Software
Open a Gold Trading Chart, Right Click on the Chart, Select New Order, & then follow the steps below:
Step 1: Choose Pending order as 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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