How Do You Analyze Difference between Sell Limit Order & Buy Stop Order?
How to Analyze Difference between Sell Limit Order & Buy Stop Order
A sell limit is an order to open sell xauusd at better price after price has retraced upward from its prevailing level.
A sell limit is an order to open sell after xauusd market retraces upwards within a downward xauusd trend.
A sell limit pending order is only executed when the prices moves upward & retraces to the set sell limit trading order level.
Entry Limit Orders: Sell Limit
Sell Limit Order definition - Entry sell limit order is an order to sell xauusd at a certain price which is a pullback area where price is predicted to pullback to before it resumes the original trend.
Traders use these sell limit orders to open sell at better price. These types of sell limit orders are provided for in most of softwares, for our example we shall use MetaTrader 4 software platform.
An entry sell limit order of this type can be used to sell above xauusd market level (retracement pullback in a downward xauusd market trend).
Sell limit - When selling, your entry sell limit is executed when xauusd market rises to your set price. ( pulls back upward )
Entry orders are placed by traders when they expect price to pull-back downwards after reaching this level.
- Entry Sell Limit Ordersell at a level above the current market price.
What's Sell Limit Order Example?
In the xauusd examples displayed below a the sell limit order was put to sell at a price above the prevailing market price. This is the level for the price pullback.
Sell Limit Order Placed to Sell above Current Price - What's a Sell Limit Order?
The price then rallied, headed upward to hit sell entry limit xauusd order, and afterward price continued to move downwards in the direction of the original XAUUSD downwards trend.
Price Hits Sell Limit Order
When price hit the set sell limit order level the sell limit order changed in to a sell xauusd order, this is therefore a good technique to sell at better price after a pullback.
What is a Buy Stop Order?
What Does Buy Stop Order Mean?
A Buy Stop Order is an order to buy xauusd after price rises to the set buy stop price level.
Buy stop pending order is always set to buy above existing market prices.
What is a Buy Stop Order Example?
In the examples shown below a buy stop order was placed to buy at a level above the current market price.
The price of the xauusd instrument then went up to hit buy stop order, & afterward price continued to move upward.
Placing Buy Stop Order above Resistance Level - What's a Buy Stop Order?
The buy stop pending order is also used to set pending xauusd order when there a consolidation chart pattern on a xauusd chart. Buy stop order is used to set a buy order just above consolidation pattern as illustrated and shown below so that if there is a price breakout upward after the consolidation setup then a new buy gold order is opened - by buy stop order once the buy stop price set is attained.
Placing Buy Stop Order in a XAUUSD Break-out - Buy Stop Order Definition and Examples
A Buy trade was generated from the above buy stop order when price broke a resistance level in the first example & when there was an upwards price breakout after a xauusd market consolidation pattern on the second buy stop pending order example.
Interpret Difference between Sell Limit Order & Buy Stop Order
