What is Difference between Sell Stop Order & Buy Stop Order?

What's Sell Stop Order?

What Does Sell Stop Order Mean?

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

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

What's Sell Stop Order Example?

In the example explained and shown below a sell stop order was placed to sell at a level below the current market price.

The price of the instrument then moved downward to hit sell stop pending order, & afterward price continued to move in a downwards direction.

Placing Sell Stop Order below Resistance Level - What's Sell Stop Order?

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

Placing Sell Stop Order in a Break out

A Sell trade was generated from the above sell stop pending order when the price broke a support level in the first example and when there was a downwards price break out after a market consolidation setup on the second sell stop order example.

What's Buy Stop Order?

What Does Buy Stop Order Mean?

A Buy Stop Order is an order to buy xauusd after the price rises to the set buy stop price zone.

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

What is Buy Stop Order Example?

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

The price of the instrument then moved upward to hit buy stop pending order, & afterward price continued to move upwards.

Placing Buy Stop Order above Resistance Level - What's Buy Stop Order?

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

Placing Buy Stop Order in a Break out

A Buy trade was generated from the above buy stop order when the price broke a resistance area in the first examples & when there was an upwards price break out after a market consolidation setup on the second buy stop order example.