pending orders, help please.

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i'm trying to set up an ea that will place two pending orders at a given minute... my problem is i don't understand the difference between buylimit, buystop, selllimit, and sellstop...


i did find this, but it still makes no sense to me...


Open_Price > Bid and Open_Price > Stop_Loss - BUYSTOP-order,

Open_Price > Bid and Open_Price < Stop_Loss - SELLLIMIT-order,

Open_Price < Ask and Open_Price > Stop_Loss - BUYLIMIT-order,

Open_Price < Ask and Open_Price < Stop_Loss - SELLSTOP-order.


let's say there's gonna be a move my ea has determined in the near future... i want it to place two pending orders, one sell and one buy, as to be ready for the move, whether it be up or down.


what i don't understand from the diagram above is why would you associate a "sell stop" order with the "ask" price? same with associating a "buy stop" with the "bid" price... doesn't make any sense to me.


it would make sense i guess if the buystop order placed a sell order once the designated open price is reached... is that how it works?


i'll post a small ea template of what i have in mind if necessary, thx in advance, i appreciate the help you guys offer here.


-dan

 
deymer:

i'm trying to set up an ea that will place two pending orders at a given minute... my problem is i don't understand the difference between buylimit, buystop, selllimit, and sellstop...


i did find this, but it still makes no sense to me...


Open_Price > Bid and Open_Price > Stop_Loss - BUYSTOP-order,

Open_Price > Bid and Open_Price < Stop_Loss - SELLLIMIT-order,

Open_Price < Ask and Open_Price > Stop_Loss - BUYLIMIT-order,

Open_Price < Ask and Open_Price < Stop_Loss - SELLSTOP-order.


let's say there's gonna be a move my ea has determined in the near future... i want it to place two pending orders, one sell and one buy, as to be ready for the move, whether it be up or down.


what i don't understand from the diagram above is why would you associate a "sell stop" order with the "ask" price? same with associating a "buy stop" with the "bid" price... doesn't make any sense to me.


it would make sense i guess if the buystop order placed a sell order once the designated open price is reached... is that how it works?


i'll post a small ea template of what i have in mind if necessary, thx in advance, i appreciate the help you guys offer here.


-dan

Hi Dan

The way I think of it is this:

Use stop orders when you expect the price to move through the level and carry on, perhaps a break-out trade.

Use limit orders when you expect the price to approach the level and turn around, perhaps a pullback to a Fib level.

Further, all buys are at the ask price and all sells are at the bid as you point out.

Cheers

Jellybean

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