Sell ​​limit.

When trading on the forex market, you can not only open urgent trades but also place pending orders that will only trigger when a specified price level is reached. Sell limits are one such order. The specifics of setting them will be discussed below.

Sell ​​limit – a pending order to sell, opened if the price reaches the specified value or becomes higher than it.

Unlike the standard sell stop pending order, in this case you trade against the trend, expecting the price to rise to the order trigger level and then begin to fall again in a downward direction.

Setting a sell limit.

To place this order, press F9 or "Open Order" in the trader's trading terminal, then select "Pending Order" and then "Sell Limit" as the execution type. Now you just need to set the "Trigger Price" (it must be higher than the current price) and the take profit and stop loss values. Then click "Place Order" and wait for it to execute.

Strategies using Sell limit.

This type of order is placed when the market is in a downtrend and there are clear reversals. Therefore, setting a sell limit will allow you to make a much larger profit than if you opened the position using the standard method.

A sell limit order is used when trading using a price channel strategy . In this case, the order is placed at the resistance line, but the current price position on the chart should also be taken into account; it should be closer to the support line. This will be the nearest price high, at which a reversal in the direction of the existing trend is expected to occur.

Another option for using this order is trading on a trend reversal. To use it, you need to know exactly at what point an uptrend can turn down and generate a profit. This point can be an important level, for example, the price high for the previous week.

These strategies are quite risky, since if the trend continues in its direction after the sell limit order is triggered, the deposit may be lost. Therefore, when opening an order, remember to set a stop-loss ; it will allow you to close the position if the price does not reverse.