Forex pending orders and trading tactics using them.

There are many strategies that utilize this trading tactic; the delayed trading option allows for automated trading without the use of third-party scripts.

But in this case, all the work of analyzing the trend and making forecasts falls entirely on you.

Pending orders allow you to not only set the price at which a trade will be opened, but also set take-profit and stop-loss levels, which, once reached, the Forex order will automatically close.

Elements of such tactics can be found in various strategies and play both a primary and a supporting role.

Some traders trade exclusively using them, placing pending orders at levels after which the price will inevitably move in the direction of the breakout and bring in a profit.

The number of successful transactions when using this tactic sometimes exceeds 70%, and under favorable circumstances, even more.

Placing pending orders and their types.

Placing such an order is quite simple; all you need to do is select pending order next to the TYPE line on the trading terminal tab when opening a new position.

After this, the order form itself will change slightly and you will need to select the type of pending order.

Buy stop is a simple example of a pending order to buy a currency, in this case it is assumed that the uptrend will continue and the position will open at a higher price than at the current moment.

Essentially, this is a bullish play, with the stop loss set below the order trigger value.

Buy limit is a more complex type of pending order. When placed, it is assumed that a pullback will occur and the price will fall below the existing level, and then rise again.

That is, an order with the limit prefix is ​​placed as if against the existing trend below the existing price.

An example of using a Buy Limit order: the current price for the EURUSD currency pair is 1.2790, the price is still moving up, but according to forecasts, it should roll back to 1.2800 and go down.

We set the Buy limit value to 1.2780, since 20 points is the standard correction value on our time frame.

Sell ​​stop – a standard pending sell order that is triggered if the price drops below the value you set, with the stop loss being set higher.

Sell ​​limit – this order is placed above the existing price; the strategy using it states that if the price reaches a certain peak, it will then begin to decline.

The essence of tactics

The essence of the pending order tactic is that it can be applied to virtually any strategy. Essentially, it's akin to a manual advisor, in which you define the conditions that, when met, trigger the order.

Such conditions may include simply the price reaching a certain level or reaching this level within a limited time, entering the market at correction points, or triggering orders after news releases.

Pending orders perform a certain auxiliary function that helps implement the signals of certain strategies.

In addition, when using them, the psychological pressure of the market on the trader is reduced and position management does not depend solely on the specified parameters.

An example of a pending order strategy.

This strategy is based on trend movement levels, meaning that when a certain level is reached, the price will break through and move further or reverse and move in a certain direction.

There are two common trading strategies: reversal trading and breakout trading.

For a reversal , we build a price channel and calculate the points of the future reversal, then place pending orders.

For a breakout , we determine a conditional boundary, having crossed which the price will definitely move further, and place our order.

more about this strategy here.

One possible application of pending orders in Forex is to use them as a kind of lock, which, when a trend reverses, opens a counter-position to a losing one, thereby locking in the financial result and preventing the loss on a previously opened order from increasing.

It is also possible to simultaneously place two orders in different directions, which significantly increases the probability of a trigger, and therefore, of making a profit.