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Consider the stock of XYZ is fluctuating around $10. I think will move up above $10 dollars in the long term but currently, there is a downward trend. I need to but it when there is a change in the trend but I'm not sure how much it will go down. I can place a limit order but the regular limit order does not take into consideration the trend and if I put a $9 limit it will buy it immediately at $9 even if the stock goes further down.

I need a trailing order but not a stop trailing order (or traling limit as is described https://www.tradingtechnologies.com/xtrader-help/x-trader/order-types/trailing-limit-orders/#:~:text=The%20Trailing%20Limit%20order%20re,better%20than%20the%20current%20market.&text=A%20Buy%20Trailing%20Limit%20sets,above%20the%20highest%20recent%20price.) as they are used to close a position and cannot be used to open a position. What would be the correct order type for the above situation?

There are many order type listed here but I'm no sure which one can be used https://www.interactivebrokers.com/en/index.php?f=4985

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From your link, trailing limit if touched, trailing market if touched, or more general conditional orders seem relevant. (All of these are broker-specific.) It's not completely clear how you want this to behave, but for example, you could have a condition triggered on the price falling to $9, that activates an order to buy if the price either falls another $1 or goes up any amount then down $1.

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  • Thanks for your response. Which part of my example is not clear so I can clarify. I'm not sure the above order types are the ones that I explained above. Could you explain? Jul 16, 2021 at 10:04
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I think what you want is algo trading:

https://www.tradingtechnologies.com/trading/algo-trading/

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