What's the Difference between Sell Limit Indices Order & Sell Stop Indices Order in 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 Sell Stop Stock Indices Order?
What Does Sell Stop Indices Order Mean?
A Sell Stop Indices Order is an order to sell indices after the stock indices price rises to the set sell stop stock indices price area.
The sell stop pending order is always set to sell below existing market indices prices.
What's Sell Stop Stock Indices Order Example?
In the examples explained below a sell stop order was placed to sell at a level below current market indices price.
The stock indices price of the indices trading instrument then went down to hit sell stop pending order, and afterward stock indices price continued to move downwards.
What's a Sell Stop Indices Order?
Sell stop order is also used to set a pending stock indices order when there's a consolidation stock indices chart pattern on a stock indices chart. The Sell stop order is used to set a sell order just below the consolidation stock indices pattern as illustrated below so that if there is a indices price break out downward after the consolidation stock indices pattern then a new sell order is opened - by the sell stop pending order once the sell stop stock indices price that is set is reached.
Setting Sell Stop Indices Order in a Indices Break-Out - Sell Stop Indices Order Definition Explained & Examples
A Sell trade was generated from the above sell stop pending order when the stock indices price broke a support level in the first examples & when there was a downwards stock indices price break out after a market consolidation stock indices chart pattern on the second sell stop order examples.
