How Do I Analyze Buy Stop Order & Sell Stop Order?

How to Interpret a Buy Stop Order & Sell Stop Order

Buy stop orders & Sell stop orders are orders used to buy above or below the current market price.

These orders are popularly used to trade when there's a consolidation pattern - placing a buy stop to buy above consolidation chart pattern & placing a sell stop to sell below the consolidation trade pattern.

Buy Stop Order & Sell Stop Order after a Consolidation Chart Pattern

These stop orders are gold trade orders to buy above the market or to sell below the market.

• Buy Stop Order An order to buy at a point above the current market price.

• Sell Stop Order An order to open sell at a point below the current market price.

What's a Buy Stop Order & Sell Stop Order?

These buy stop and sell stop pending orders are used by traders wanting to trade a set-up like the consolidation pattern but they do not want to wait & watch the prices all day long until there a price break out.

Therefore, traders will set these pending buy stop orders & sell stop orders above and below current price & a price break out in any of these direction will execute one of these trading pending stop orders & a buy trade or a sell trade will automatically be executed.

Read a Buy Stop Order & Sell Stop Order