Sell Stop Order Definition

A Sell Stop Order is an order to sell a indices after the price rises to the set sell stop stock price region.

The sell stop order is always set to sell below the current stock market price.

How to Set A Sell Stop Order in Indices Trading

In the examples below a sell stop order was put to sell at a level below the current stock market price.

The price pair then went down to hit the sell stop order, & afterward stock price continued to move in a downwards direction.

Sell Stop Order Explanation - Sell Stop Order Definition

Sell stop order is also used to set a pending order when there's a consolidation stock chart pattern on a chart. The sell stop order is used to set a sell order just below the consolidation stock chart pattern as shown on the trading example explained and illustrated below so that if there is a price breakout downwards after the consolidation stock pattern then a new sell order is opened by the pending sell stop order - once the sell stop stock trading price that set is reached.

Setting Sell Stop Order in a Price Breakout - How to Set A Sell Stop Order in Indices

A Sell trade was opened from the above pending sell stop order when the price broke a support level in the first example and when there was a downward stock price break-out after a indices consolidation stock pattern on the second sell stop order example.