WickCheck / Trading school / Stop order
Stop orderBeginner
An order to buy above or sell below the current price, used to enter breakouts or to exit with a stop loss.
What it means
A buy stop above a high enters only if price breaks out. A stop loss is also a stop order. Stop orders become market orders when triggered, so they can slip.
How to spot it
- Buy stop above price, sell stop below price.
Common mistakes
- Confusing a stop order (breakout) with a limit order (pullback).
Related terms
Limit orderAn order to buy below or sell above the current price, filled only at your price…Stop lossThe price where a losing trade is closed to cap the loss at a planned amount.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.