Sell Stop Order Definition

A Sell Stop Order is an order to sell a gold after price rises to the set sell stop price level.

The sell stop order is always set to sell below the current market price.

Sell Stop Order

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

The price pair then went down to hit the sell stop order, and afterward price continued to move downward.

Setting Sell Stop Order below the Resistance Area - Sell Stop Order Meaning

The sell stop order is also used to set a pending order when there a consolidation pattern setup on a chart. The sell stop order is used to set a sell order just below the consolidation chart pattern as shown on the example depicted and explained below so that if there's a price breakout downwards after the consolidation pattern then a new sell order is opened by the pending sell stop order - once the sell stop price set is reached.

Setting Sell Stop Order in a Price Breakout - How to Set A Sell Stop Order in Gold Trading

A Sell trade was opened from the above pending sell stop order when the price broke a support level in the first example and when there was a downwards price break-out after a consolidation chart pattern on the second sell stop order examples.