Placing pending orders

Strategies based on placing pending orders usually give more profit than working withpending orders a standard trading scheme.

The reason for this phenomenon is the exclusion of the psychological factor from the trading process, which only interferes with making the right decisions.

A pending order allows you to set the price level upon reaching which a position will be opened; in addition, you also have the opportunity to immediately limit the amount of losses by setting a stop loss and plan the amount of profit using a take profit.

Placing pending orders is not as simple a task as it might seem at first glance; when setting it correctly, a number of important aspects and parameters should be taken into account.

In addition to purely technical issues, you should also determine where exactly to place a pending order, so that when triggered it would bring a profit and not be buried at a loss.

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Technical aspects of placing pending orders on Forex.

To place a new pending order, click the "New Order" tab, which is usually located at the top of your trading terminal. Then, set the following parameters:

1. Trade volume – the amount of currency you will buy or sell.

2. Type – pending order – after this you will need to select the direction of the transaction and the type of order itself.

Sell ​​limit and buy limit – allow you to sell or buy currency at a certain price, but I prefer to use the second option

Buy stop or sell stop: in this case, pending orders are opened if the price reaches a certain level; this option is suitable for breakout trading.

3. Price – here we set the price at which our position will be opened.

4. Stop-loss and take-profit levels – I deliberately placed them after the price, although in the trading terminal they appear earlier. In practice, it's more convenient to set the trigger price first, and then set the stop-loss and take-profit based on that; in my opinion, this makes more sense.

5. Place an order.

placing a pending order

Search for points for placing pending orders.

In principle, the technical issue is clear, but where to place pending orders? There are several options for finding entry points, all based on technical analysis of trend movement.

1. Breakout – the price usually moves within a certain range; your task is simply to identify its extremes and place an order a little further. The position will be opened if the price changes its momentum and confidently moves further.

2. There is also another secret to finding the right entry point into the market, it is based on round numbers, for example, if the trend is within 1.2410 - 1.2490 for some time, then attractive entry points will be 1.2400 and 1.2500, most likely, having overcome this level, the price will rush further.

3. Against the trend – if you see that the price movement is followed by constant pullbacks, you can take a risk and place a pending order for double the value of such a pullback; in this case, it will be triggered if the trend reverses.

4. On the news - there's not always time to wait for important news to be released, but it's known how the trend should react to its appearance, so a pending order is placed slightly beyond the price channel boundary.

For example, if news is released that has a positive impact on the price of the base currency in a currency pair, then we place our order above the resistance level.

Stop-loss and take-profit.

This is a rather sensitive issue when working with pending orders, since you don't control the trade, so you need to choose their size so that the order is triggered, but doesn't get lost during a pullback.

Therefore, before setting stop orders, analyze the size of the rollbacks and use the obtained result as a guide.

the stop loss a little higher than the pullback (correction) and the take profit a little lower. If you are confident in your calculations, try not to change the levels during trading.

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