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Originally posted by VNGNTN1:
Can anyone explain any relationship between the subject & order types ie: Limit, Stop, Stop Limt ?

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Van.....here is my explanation. LMK if this is what you are looking for:

Limit....an order to buy or sell at a specific price. Say .01. Stock xyz is at .013 and starts down. You put in a limit sell at .01. If you completely fill, great, but if it passes you by very fast...you don't get a fill. Your order still sits there with a limit ask of .01 (the minimum you would accept).

Stop....doesn't usually apply in OTCBB world. But in AMEX, NASDAQ, and NYSE. Stock xyz is at .80. You don't want risk anything more than a drop to .75. So, you put in a stop at .75. If it hits .75 your order immediately activates as a market order. You will get filled (maybe some at .74 etc.).

Stop Limit....same scenario as with a Stop, only your order is activated as a limit order. You may fill at .75, but if it drops very fast, you may not get a total fill.

The relationship to Support/Resistance from what I have read is simply strategy. If you buy something today, you should set your stop just below yesterday's low (the most recent support level) depending on how far down that is from where you bought. If its a large drop, then set a stop at a number you are not willing to go under for loss.

Or, if you don't think something will break resistance, you set a stop just below the high you expect...then you get decent profit before it retraces (the risk being that it might break resistance and run).

Stops are excellent protection devices for AMEX, NASDAQ, and NYSE plays. Always protect your capital when you can. Unfortunately, Ameritrade doesn't allow stops in OTCBB because of the huge volatility.

In this scenario, you are willing to buy let's say QQQ Jan. 04 calls.
But you cannot decide at which strike price you gonna buy..Jan04 call @ 34 strike costs 1.85, @38 costs .20..if there are lots of resistance between 34 and 38 you wanna buy @1.85, if there are not significant resistance points, you are willing to take more risk and buy @ 38..And you wanna see these resistance levels by reaching some e.g stop sell or stop buy orders between 34&38...Pls, let me know whether I am with you or not...

GL

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Originally posted by VNGNTN1:
P90
Yes I understand this, but you missed my concept, Probably did not expressit correctly.
Once more. There is a "volume" of orders both buy & sell both above & below current price. I am trying to access these volumes. A correlation to this would be the option markets. You can look into the future by month & strike price and see the open interest and contracts. This information really really helps deciding where to place and option order and to some extent(even though a different pool of money) where a regular order might be headed.

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