How Do You Analyze the Difference between Sell Stop Order and Buy Limit Order?
How to Analyze the Difference between Sell Stop Order and Buy Limit Order
What Does Sell Stop Order Mean?
A Sell Stop Order is an order to sell gold after price rises to the set sell stop price level.
The sell stop order is always set to sell below the current market prices.
Sell Stop Order
In the examples shown below a sell stop pending order was put to sell at a level below the current market price.
The price of the instrument then went down to hit sell stop pending order, & afterwards price continued to move downwards.
Placing Sell Stop Order below Resistance Level - What's a Sell Stop Order?
The sell stop pending order is also used to set pending xauusd order when there a consolidation chart pattern on a chart. Sell stop pending 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 price breakout downwards after the consolidation setup then a new sell order is opened - by sell stop order once sell stop price set is attained.
Placing Sell Stop Order in a XAUUSD Break-out - Sell Stop Order Definition and 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 downwards price breakout after a xauusd market consolidation setup on the second sell stop order example.
What is a Buy Limit Order?
A buy limit is an order to open buy xauusd at better price after price has retraced from its prevailing level.
A buy limit is an order to open buy at a lower price than the prevailing price
A buy limit order is only executed when prices falls & retraces to the set buy limit trading order level.
Entry Limit Orders: Buy Limit
Buy Limit Order definition - Entry limit order is an order to buy xauusd at a certain price which is a pullback area where price is predicted to pullback to before it resumes 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 softwares, for our example we shall use MetaTrader 4 software platform.
A buy limit of this type can be used to open buy below market level (retracement in an upwards xauusd trend market).
Buy limit - When buying, your entry buy limit is executed when market falls to your set price. ( pulls back down )
Entry orders are placed by traders when they expect price to bounce back after reaching to this point.
- Entry Buy Limit Orderbuy at a level below the current market price.
Buy Entry Limit Order Example
In the example shown below, the buy limit was set to open buy at price below the prevailing market price. Point Marked B is point that it was set.
Buy Limit Order Placed to Buy Below Current Price - What's a Buy Limit Order?
The price then retraced & went down to hit the buy entry limit xauusd order, and afterward price continued to move upwards in the direction of the original XAUUSD upwards trend. When the limit buy order was hit it changed into a buy gold trade order.
XAUUSD Price Hits Buy Limit Order
Interpret Difference between Sell Stop Order and Buy Limit Order
