How Do I Interpret Difference between Sell LimitOrder & Sell Stop Order?
How to Analyze Difference between Sell Limit Order & Sell Stop Order
A sell limit order is an order used to sell xauusd at better price after price has retraced upward from its current area.
A sell limit order is an order to open sell after market retraces up-ward within a downwards trend.
A sell limit pending order is only executed when prices moves upwards and retraces to the set sell limit pending level.
Entry Limit Orders: Sell Limit
Sell LimitOrder definition - Entry sell limit order is an order to sell a xauusd at a certain price which is a pull-back area where price is predicted to pull back to before it resumes the original trend.
Traders use these sell limit pending orders to open sell at better price. These types of sell limitpending orders are provided in most of +the online trade platform softwares, for our examples we will use MetaTrader 4.
An entry sell limit pending order of this type can be used to sell above market level (retracement pull back in a down-wards trend market).
Sell limit - When selling, your entry sell limit pending is executed when market rises to your set price. ( retraces upward )
Entry orders are placed by traders when they expect price to pullback down ward after reaching this region.
- Entry Sell Limitsell at a level above ruling market level.
What's a Sell LimitOrder Example?
In the examples illustrated & described below a the sell limit order was set to sell at a price above the ruling market price. This is the level for the price pull-back.
Sell LimitPlaced to Sell above Current Market Price
The gold then rallied, headed upward to hit sell entry limit order, & afterward price continued to move down-ward in the direction of the original downward trend.
Order now Changes to a Sell order
When price got to the set sell limit order level the sell limit pending changed in to a sell order, this is thenceforth a good technique to sell at better price after a pull-back.
What is Sell Stop ?
What Does Sell StopOrder Mean?
A Sell Stop Order is an order to sell a gold after the price rises to the set sell stop price region.
The sell stop order is always set to sell below the existing market prices.
What's Sell StopOrder Example?
In the examples explained and shown below a sell stop order was set to sell at a level below current market price.
The price of the gold then moved downwards to hit sell stop, and afterward price continued to move in a downwards direction.
Placing Sell Stop Order below Resistance Level - What's Sell Stop?
Sell stop order is also used to set a pending order when there is a consolidation pattern on a trading chart. The Sell stop is used to set a sell order just below consolidation pattern as shown below so that if there is a price break out down-wards after the consolidation pattern then a new sell order is opened - by the sell stop once sell stop price that's set is reached.
Placing Sell Stop Order in a Break Out - Sell Stop Order Definition & Trading Example
A Sell trade was generated from the above sell stop pending order when the price broke a support area in the first examples & when there was a downwards price break-out after a market consolidation pattern on the second sell stop pending order examples.
How Do I Read the Difference between Sell LimitOrder and Sell Stop
Get More Lessons and Topics:
- Technical Analysis Momentum Trading Indicator Buy FX Trading Signal
- What is the Interpretation of Bullish Ascending Triangle Chart Patterns?
- How to Add SL XAU/USD Order on MT4 Trading Software
- Technical Analysis Fractals Trading Indicator Buy FX Trading Signal
- MA XAU/USD Chart Support Level Turns Resistance Level & Vice Versa