How Do I Analyze the Difference between Sell Stop XAUUSD Order and Buy Limit XAUUSD Order?
How to Analyze the Difference between Sell Stop XAUUSD Order and Buy Limit XAUUSD Order
What Does Sell Stop XAUUSD Order Mean?
A Sell Stop XAUUSD Order is an order to sell xauusd after the price rises to the set sell stop gold price level.
The sell stop order is always set to sell below the existing market gold prices.
Sell Stop Gold Order
In the examples shown below a sell stop pending order was placed to sell at a level below the current market gold price.
The gold price of the xauusd trading instrument then went down to hit sell stop pending order, & afterwards gold price continued to move downwards.
Setting Sell Stop XAUUSD Order below Resistance Level - What is a Sell Stop XAUUSD Order?
The sell stop pending order is also used to set pending xauusd order when there's a consolidation chart pattern on a gold chart. Sell stop order is used to set a sell xauusd order just below the consolidation pattern as illustrated and shown below so that if there is a gold price break-out downwards after the consolidation pattern then a new sell gold order is opened - by the sell stop order once the sell stop gold price set is reached.
Setting Sell Stop XAUUSD Order in a XAUUSD Break Out - Sell Stop XAUUSD Order Definition and XAUUSD Examples
A Sell trade was generated from the above sell stop pending order when price broke a support level in the first example & when there was a downward gold price breakout after a xauusd market consolidation pattern on the second sell stop pending order example.
What is a Buy Limit XAUUSD Order?
A buy limit order is an order to buy xauusd at a better price after gold price has retraced from its current level.
A buy limit order is an order to buy at a lower gold price than the current gold price
A buy limit order is only executed when the prices falls & retraces to the set buy limit gold trade order level.
Entry Limit Gold Orders: Buy Entry Limit
Buy Limit XAUUSD Order definition - Entry limit gold order is an order to buy xauusd at a certain gold price which is a retracement level where gold price is predicted to pull-back to before resuming the original XAUUSD trend.
Traders use buy limit orders to buy at a better market price. These types of buy limit orders are provided for in most of online trading softwares, for our example we shall use MT4 trading software.
An entry buy limit order of this type can be used to buy below the xauusd market level (retracement in an upward xauusd trend market).
Buy limit - When buying, your entry buy limit pending order is executed when the xauusd market falls to your set gold price. ( retraces down )
Entry orders are placed by traders when they expect gold price to bounce back after reaching this level.
- Entry Buy Limit XAUUSD Orderbuy at a level below the current market price.
Buy Entry Limit XAUUSD Order Example
In the xauusd example shown below, the buy limit order was placed to buy at a gold price below the current market gold price. Point Marked B is the point at which it was set.
Buy Limit XAUUSD Order Placed to Buy Below the Current Market XAUUSD Price - What's a Buy Limit XAUUSD Order?
The gold price then retraced & went down to hit the buy entry limit xauusd order, and afterward gold price continued to move upwards in the direction of the original XAUUSD upwards trend. When the limit buy xauusd order was hit it changed to a buy gold trade order.
XAUUSD Price Hits Buy Limit XAUUSD Order
Read the Difference between Sell Stop XAUUSD Order and Buy Limit XAUUSD Order
