Forex pending orders and trading tactics using them.

There are many strategies using this trading tactics; the deferred trading option allows you to conduct automatic trading without the use of extraneous scripts.

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

Pending orders make it possible not only to set the price at which a transaction will be opened, but also to set take profit and stop loss levels after reaching which the Forex order will close on its own.

Elements of such tactics can be found in various strategies and play both a main and an auxiliary role.

Some traders trade exclusively using them, placing pending orders at levels after crossing which the price will definitely move towards the breakout and bring profit.

The number of successful transactions when using this tactic sometimes exceeds 70%, and with a successful combination of circumstances, even more.

Placing pending orders and their types.

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

After this, the placement form itself will change slightly and you will have 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 upward trend will continue and the position will be opened at a higher price than at the moment.

In essence, this is a bullish game, with the stop loss set below the order trigger value.

Buy limit is a more complex type of pending orders; when placing it, it is assumed that in the future there will be a rollback and the price will drop below the existing level, and then go up again.

That is, an order with the prefix limit 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 continues to move up, but according to forecasts it should pull back at the 1.2800 point 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 is a standard pending sell order, it is triggered if the price falls below the value you set, while the stop loss is set higher.

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

The essence of tactics

The essence of the tactic using pending orders is that it can be applied to almost every strategy. In fact, this is a kind of manual advisor in which you lay down the very conditions under which the order will be triggered.

such conditions may simply be the price reaching a certain level or if this level is reached within a limited time, entering the market at correction points, or triggering orders after the news is released.

Pending orders have a certain auxiliary function that helps to implement 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 only 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 breakout and move further or make a reversal and move in a certain direction.

There are two common trading strategies: reversal or breakout.

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

For a breakout , we determine a conditional border, beyond which the price will definitely move further, and place our order.

more about this strategy here.

One of the options for using pending orders on Forex can be their use as a kind of locks, which, when the trend reverses, open a counter position to a losing one, thereby fixing the financial result and preventing the loss on a previously opened order from increasing.

Two orders can also be placed simultaneously in different directions, which significantly increases the likelihood of triggering, and therefore making a profit.