I wondering what is the best order type for this situation: STOP MARKET or STOP LIMIT.
I am also using a software called Tradingview that allows one to get Alerts when Price reaches a certain level.
Scenario: Price of a stock is currently at a certain level (ex: $500) - but - there have been rumors that it could go down to $250. The rumor also says that the price would "go down and come back up quickly".
I wanted to do something like "stagger-buy" scenario at intervals of $50.
So, when the price starts going down, the following would happen:
At $450, create a STOP LIMIT order to STOP at $450 and to BUY shares at $460
At $400, create a STOP LIMIT order to STOP at $400 and to BUY shares at $410
My experience has been that if I use a LIMIT order alone, the BUY would happen immediately (because price is going down - quickly).
I did not want this. I wanted to buy the shares when the Price turns around and starts coming back up again.
Is this possible?