What is a Buy Stop Stocks Order?

What Does Buy Stop Stocks Order Mean?

A Buy Stop Stocks Order is an order to buy a stocks after the price rises to the set buy stop stocks price area.

The buy stop pending order is always set to buy above the existing market stocks prices.

Buy Stop Stock Order

In the example explained & shown below a buy stop order was placed to buy at a level above the current market stocks price.

The stocks price of the stocks instrument then went up to hit the buy stop pending order, & afterwards stocks price continued to move upward.

Placing Buy Stop Stocks Order above Resistance Level - What is a Buy Stop Stock Order?

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

Placing Buy Stop Stock Order in a Stocks Break-out - Buy Stop Stocks Order Meaning & Examples

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