Sell Stop Order Definition
A Sell Stop Order is an order to sell a gold after the price rises to the set sell stop price level.
The sell stop order is always set to open a sell trade below the current market price.
Sell Stop
In the illustrations below a sell stop pending was set to open a sell trade at a point below the ruling market price.
The price then went down to hit the sell stop order, and afterward price continued to move downwards.
Setting Sell Stopbelow the Resistance Area - Sell Stop Order Meaning
The sell stop order is also used to set a pending order when there's a consolidation pattern formation on a chart. The sell stop order is used to set a sell order just below the consolidation chart pattern just as is displayed on the example illustration illustrated 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 and attained.
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 when the price broke a support level in the first example and when there was a downwards price break-out after a consolidation chart setup on the second sell stop order illustrations.
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