How Do I Analyze Difference between Sell Limit Forex Order & Sell Stop Order?
Difference between Sell Limit Order & Sell Stop Order
A sell limit is an order used to sell forex instrument at a better forex price after price has retraced upward from its current level.
A sell limit pending order is an order to sell after the market retraces up-ward within a downward trend.
A sell limit order is only executed when forex instrument forex prices moves upward and retraces to the set sell limit pending order level.
What is a Sell Limit Forex Order Example?
Sell Limit Forex Order order definition - Entry sell limit order is an order to sell a forex instrument at a certain forex price which is a pull back area where forex price is predicted to pull-back to before it resumes the original trend.
Traders use these sell limit orders to open sell at better market price. These types of sell limit orders are available in most of online platforms, for our example we shall be using the MT4.
An entry sell limit order of this type can be used to sell above market level (retracement pull back in a downward trend market).
Sell limit - When selling, your entry sell limit order is executed when market rises to your set forex price. ( retraces upward )
Entry orders are set by traders when they expect price to pull back downward after reaching this level.
- Entry Sell Limit Forex Ordersell at a level above the current market level.
What is a Sell Limit FX Order Example?
In the example below a the sell limit order was set to sell at a forex price above the ruling market forex price. This is the level for the price pull back.
Sell Limit Forex Order Placed to Sell above Current Price
The forex instrument then rallied, went upward to hit sell entry limit forex order, and afterwards forex price continued to move downward in direction of the original downward trend.
Price Hits Sell Limit Order - Order now Changes to a Sell order
When forex instrument forex price got to the set sell limit order level the sell limit order changed in to a sell order, this is hence a good method to sell at a better forex price after a pull back.
What's Sell Stop Order?
What Does Sell Stop Order Mean?
A Sell Stop Order forex order is an order to sell a forex instrument after the price rises to the set sell stop price region.
The sell stop order is always set to sell below existing market forex prices.
What's Sell Stop Order Example?
In the examples illustrated below a sell stop order was set to sell at a level below the current market forex price.
The forex price of the instrument then went down to hit sell stop pending order, & afterwards forex price continued to move in a downward direction.
Setting Sell Stop Order below Resistance Level
The sell stop order is also used to set a forex pending order when there's a consolidation setup on a forex chart. The Sell stop is used to set a sell order just below consolidation pattern as shown and illustrated below so that if there is a forex price breakout downwards after the consolidation setup then a new sell order is opened - by sell stop once sell stop price which's set is attained.
Setting Sell Stop Order in a Break Out
A Sell trade was generated from the above sell stop order when price broke a support level in first example and when there was a downward forex price breakout after a forex market consolidation pattern on second sell stop order example.
How Do I Analyze Difference between Sell Limit Forex Order & Sell Stop Order?
