How Do You Analyze the Difference between Sell Stop Forex Order and Buy Stop Order?

Difference between Sell Stop Order and Buy Stop Order

What Does Sell Stop Forex Order Mean?

A Sell Stop Forex Order forex order is an order to sell a forex instrument after the price rises to the set sell stop forex price region.

The sell stop order is always set to sell below existing market forex prices.

What's Sell Stop Forex Order Example?

In the examples shown below a sell stop order was placed to sell at a level below the current market forex price.

The forex price of the forex instrument then went down to hit sell stop pending order, and afterwards forex price continued to move in a downwards direction.

Setting Sell Stop Forex Order below Resistance Level

The sell stop order is also used to set a forex pending order when there's a consolidation pattern on a forex chart. The Sell stop order is used to set a sell forex order just below consolidation pattern as shown and illustrated below so that if there is a forex price break-out downwards after the consolidation pattern then a new sell forex order is opened - by the sell stop order once the sell stop forex trading price that set is reached.

Setting Sell Stop Forex Order in a Breakout

A Sell trade was generated from the above sell stop order when price broke a support level in first example & when there was a downwards forex price breakout after a forex market consolidation pattern on second sell stop order example.

What's Buy Stop Forex Order?

What Does Buy Stop Forex Order Mean?

A Buy Stop Forex Order order is an order to buy a forex instrument after the price rises to the set buy stop forex price region.

The buy stop order is always set to buy above existing market forex prices.

What is Buy Stop Forex Order Example?

In the examples shown below a buy stop order was placed to buy at a level above the current market forex price.

The forex price of the forex instrument then went up to hit buy stop pending order, and afterwards forex price continued to move upwards.

Placing Buy Stop Forex Order above Resistance Level

The buy stop order is also used to set a forex pending order when there's a consolidation pattern on a forex chart. The Buy stop order is used to set a buy forex order just above consolidation pattern as shown & illustrated below so that if there is a forex price break-out upwards after the consolidation pattern then a new buy forex order is opened - by buy stop order once the buy stop forex trading price that set is reached.

Placing Buy Stop Forex Order in a Breakout

A Buy trade was generated from the above buy stop order when price broke a resistance level in first example & when there was an upward forex price breakout after a forex market consolidation pattern on second buy stop order example.

How Do I Analyze the Difference between Sell Stop Forex Order and Buy Stop Order?