Buy Stop Order and Sell Stop Order
These are orders to buy above the market price or sell below the market price
Buy Stop OrderAn order to buy at a level above the current market price
Sell Stop OrderAn order to sell at a level below the current market price
Buy Stop Order and Sell Stop Order
These stop orders are used by traders who want to trade a setup like the consolidation chart pattern, but they do not want to wait all day watching the prices of Gold until there is a price breakout. Therefore, these traders will use these orders to set pending orders above and below the consolidating prices and a price breakout in any of the direction will execute one of these pending orders and a buy trade or a sell trade will automatically be opened.
Buy Stop Order
An example of a buy stop order is shown below.
In the example a buy stop order was placed to buy at a level above the current market price.
The price then went up to hit the buy stop order, and afterwards price continued to move upwards.
Setting a Buy Stop Order above a Resistance Level
Setting a Buy Stop Order above a Price Consolidation
A buy was generated from the above stop order setups, when price broke a resistance level in the first example and when there was an upward breakout of prices after the price consolidation chart pattern in the second example.
Sell Stop Order
An example of a sell stop order is shown below.
In the example a sell stop order was placed to sell at a level below the current market price.
The price then went down to hit the sell stop order, and afterwards price continued to move downwards.
Setting a Sell Stop Order below a Resistance Level
Setting a Sell Stop Order below a Price Consolidation
A sell was generated from the above stop order setups, when price broke a support level in the first example and when there was a downward breakout of prices after the price consolidation chart pattern in the second example.
How to differentiate between stop orders and limit orders
It is easier to first of all remember one concept. The easier concept is that of Stop Orders - stop orders are set above and below the price.
Setting Buy and Sell Stop Orders on MetaTrader4 Platform
Open a Gold Trading Chart, Right Click on the Chart, Select New Order, and then follow the steps below:
Step 1: Select Pending order as shown belowStep 2: Select Pending Order Menu as Show belowStep 3: Select Buy Stop or Sell Stop Step 4: Click "Place" Order
Steps to Setting Buy Stop or Sell Stop Orders on MetaTrader 4 Platform
