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But before the downtrend, you expecting a retracement first at price 15. So you will set a pending order: Sell Limit at price 15, hopping that the trend will downtred toward price 2. b.) Sell Stop Let say current price is at 10, and you expecting a downtrend if the price break down at price 7. Expecting going lower to price 1. So you will set a pending order: Sell Stop a price 7, hoping the trend will down tred toward price 1. rover