What's the Difference between Sell Limit Stock Indices Order & Buy Limit Indices Order in Stock Indices Trading?
What is Sell Limit Indices Order?
A sell limit order is an order to sell indices at a better stock indices price after stock indices price has retraced upward from its current area.
A sell limit order is an order to sell after the stock indices trading market retraces upward within a downwards trend.
A sell limit is only executed when the stock indices trading prices moves upwards & retraces to the set sell limit area.
What is Sell Limit Stock Indices Order Example?
Sell Limit Indices Order definition - Entry sell limit is an order to sell indices at a certain stock indices price which is a retracement level where stock indices price is predicted to pull-back to before resuming the original Indices trend.
Traders use sell limit orders to sell at better market price. These types of sell limit orders are available in most of trading softwares, for our example we will be using MT4 stock indices trading software.
An entry sell limit pending order of this type can be used to sell above stock indices trading market level (retracement pullback in a down indices trend Indices Trading market).
Sell limit - When selling, your entry sell limit is executed when stock indices trading market rises to your set indices price. (retraces up)
Entry orders are placed by indices traders when they expect stock indices trading price to pull-back downward after reaching this area.
- Entry Sell Limit Indices Ordersell at a level above the current market level.
Sell Limit Indices Order
In the stock indices trading example explained and illustrated below a the sell limit order was placed to sell at a indices price above the current market indices price. This is the level for the stock indices price retracement.
Sell Limit Indices Order Placed to Sell above the Current Market Indices Price - What's Sell Limit Indices Order?
The indices price then rallied, went up to hit sell entry limit, and afterwards stock indices price continued to move downward in direction of the original Indices downward trend.
Order now Changes to a Sell order - Sell Limit Indices Order Definition and Examples
When stock indices price got to the set sell limit order level the sell limit pending order changed in to a sell order, this is therefore a good method to sell at a better stock indices price after a retracement move.
What's Buy Stop Stock Indices Order?
What Does Buy Stop Indices Order Mean?
A Buy Stop Indices Order is an order to buy indices after the stock indices price rises to the set buy stop stock indices price area.
The buy stop pending order is always set to buy above existing market indices prices.
Buy Stop Stock Indices Order
In the examples explained below a buy stop order was placed to buy at a level above current market indices price.
The stock indices price of the indices trading instrument then went up to hit buy stop pending order, & afterward stock indices price continued to move upwards.
What is Buy Stop Indices Order?
Buy stop order is also used to set pending stock indices order when there's a consolidation stock indices chart pattern on a stock indices chart. Buy stop order is used to set a buy order just above the consolidation stock indices pattern as illustrated below so that if there is a indices price breakout upwards after the consolidation stock indices pattern then a new buy order is opened - by buy stop pending order once the buy stop stock indices price that is set is reached.
Placing Buy Stop Indices Order in a Indices Break Out - Buy Stop Indices Order Definition Explained & Examples
A Buy trade was generated from the above buy stop order when the stock indices price broke a resistance level in the first examples & when there was an upwards stock indices price break out after a market consolidation stock indices pattern on the second buy stop order examples.
