Understanding Buy/Sell Above/Below and Threshold Logic in Your Trading System
📌 Understanding Buy/Sell Above/Below and Threshold Logic in Your Trading System
Your trading system supports conditional order execution based on price movements.
These features allow precise trade execution when the market reaches specific levels.
🔹 1️⃣ Buy Above & Sell Below (Breakout Strategy)
These orders execute only when the price crosses a certain level.
✅ Buy Above Logic
- A Buy order is placed above the current price.
- The order executes only when the price moves up and crosses the set level.
- Used when expecting a breakout above resistance.
Example:
- Current NIFTY price = 19800
- Buy Above 19850
✅ The order is triggered only when NIFTY crosses 19850.
✅ Sell Below Logic
- A Sell order is placed below the current price.
- The order executes only when the price moves down and crosses the set level.
- Used when expecting a breakdown below support.
Example:
- Current BANKNIFTY price = 44100
- Sell Below 44050
✅ The order is triggered only when BANKNIFTY falls below 44050.
🔹 2️⃣ Buy Below & Sell Above (Reversal Strategy)
These orders execute when the price reaches a certain level and reverses.
✅ Buy Below Logic
- A Buy order is placed below the current price.
- The order executes only when the price drops, touches the level, and starts to move up.
- Used when expecting a bounce from support.
Example:
- Current RELIANCE price = 2500
- Buy Below 2475
✅ The order executes only if RELIANCE falls to 2475 and starts bouncing up.
✅ Sell Above Logic
- A Sell order is placed above the current price.
- The order executes only when the price moves up, touches the level, and starts to drop.
- Used when expecting a rejection from resistance.
Example:
- Current TCS price = 3600
- Sell Above 3630
✅ The order executes only if TCS rises to 3630 and starts falling.
🔹 3️⃣ Threshold Logic (Extra Confirmation)
A Threshold Range is added for confirmation before executing Buy Above/Sell Below orders.
This prevents orders from triggering due to small price spikes.
✅ Example: Buy Above with Threshold
- Current price = 19800
- Buy Above = 19850
- Threshold = 5 points
✅ The order executes only if the price moves past 19855 (19850 + 5).
✅ Example: Sell Below with Threshold
- Current price = 44100
- Sell Below = 44050
- Threshold = 10 points
✅ The order executes only if the price moves past 44040 (44050 – 10).
🎯 Summary of Execution Logic
Order Type | Execution Condition | Used For |
---|---|---|
Buy Above | Price rises above the set level | Breakout Entry |
Sell Below | Price falls below the set level | Breakdown Entry |
Buy Below | Price falls, touches level, and reverses up | Support Reversal |
Sell Above | Price rises, touches level, and reverses down | Resistance Reversal |
Threshold | Ensures price moves beyond a buffer before execution | Avoids false triggers |