Pending orders on the Forex
Pending orders on
Forex used by many traders to trade the forex market. Important
understand the difference between the types of pending orders on the Forex to more
efficient use of their properties in the implementation of a trading strategy.
Deferred Forex warrant
- a trading order, a trader sends via their MT4 platform
broker for the purpose of purchase or sell a certain position when the obbem
the price of the pending order level.
That is to say, a trader may
determine in advance the price levels at which it plans to enter the market and
It will use for this pending orders on Forex. Installing deferred
order depends on the trader's intention to enter into specific points on the graph
the price of the currency pair. As a general rule, the intention of the trader to use the deferred
warrant, due to its trade strategy.
See Fig. 1 in the Annex
There are the following
types of pending orders:
Buy Limit - pending order to buy at
where the Ask price
It should reach the level of a pending order. In this case, the current exchange rate more
than the level of installation of a pending order. As a rule, this type of deferred
warrant used by traders with the desire to enter the market on the rebound from a key
support or resistance level with the aim to take the turning points, or enter
for the purchase in the end of the correction at the best prices.
Buy Stop - a pending order to buy,
who also works at the price of Ask, when the exchange rate approaches him. Wherein
the current exchange rate is less than the rate of installation of a pending order. Often
this type of a pending order are traders that plan to enter the
break of key levels of support and resistance for the purpose of hunting pulse
trend movements.
Sell Limit - a pending order for sale
It works at the Bid price.
In this case, the current exchange rate is less than the level of a pending order. Basically,
similar type of pending order the trader's favor in the case of rebound
the level of support and resistance for the purpose of profitable to sell the currency at the most
top in the hope of a deep correction or reversal.
Sell Stop - a pending order for sale,
which is also activated at the Bid price. In this case, current exchange rates compared to the level
pending order. This type of pending order is used to log on
breakdown of the level of support and resistance in a robust profitable to sell the currency on
pulse trend movement.
As you have seen from
describe the types of pending orders, there are two groups of pending orders: Stop and Limit. In this case, Stop orders help traders come on
the breakdown level and Limit
Order - on the rebound from the level. Thus, using different types of
pending orders, a trader can build a variety of tactics entry into the market,
as well as the combination of support already open positions.
How to install
pending order?
To install a deferred
orders should call in the platform MT4 window "New Order» (F9), and change the order type to
pending order.
See Fig. 2 in the Annex
In the new order you
You see the fields that must be filled for the opening of a pending order.
·
Symbol - a currency pair, you
chosen to trade. Be careful, because the newcomers at first always
overlooked by the symbol order opening and then wonder why not see at
price chart to its open position.
·
Obbem - obbem this position in lots.
Remember that a lot, if the type Standart trading account is $ 10. US for
every point of movement of the exchange rate.
·
Stop loss - is the level of the safety
order at which you commit a loss on your open
position. Stop loss can be delivered later, using the public modification
order terminal MT4 platform.
·
Take - is the level of the Target,
planned profit in points. Take Profit can also be supplied later if you
still undecided.
·
Comment - this field is necessary
disciplined trader for . In the comments, you can
write input the reason in the position briefly. comments field is reflected in the
MT4 terminal and, if necessary, it can be deduced in rezultatiruyuschem
Trade report (Statement).
·
Type - is a market or a pending order.
If you select a pending order, you can also choose another type and
pending order: Buy
Limit,
Buy
Stop,
Sell
Limit,
Sell
Stop.
·
For the price - is the price level at which
the pending order to be activated.
·
Expiration - this time the action
pending order. If it is not complete, the pending order will be hanging up
until you delete it. Sometimes a function of time is useful for
trader as to keep pending positions at night may not be safe.
Therefore, experienced traders put the pending orders to certain of their time
work, such as 12 hours, whereupon a pending order is canceled, and
trader night sleeping peacefully.
what are the possible
combination use pending orders?
Example 1: Work at
catch pulse movement currency pair at the exit of the flat. As soon as you
you can see that the price does not break its highs and lows for several hours
M15 chart for the chosen currency pair, you can already draw a horizontal levels
Support and resistance for the maximum and minimum price range.
Suppose that you are not sure which side of the flat will the exchange rate,
so you can use pending orders Buy Stop and Sell Stop with the aim to enter the flat sample
up and / or down.
Example 2. Using
deep correction. Surely you've seen a pattern when any
major currency pairs sharp pulse shoots up or down, and then
a few days adjusted slowly to a level 50% Fibonacci, or even
61.8%, and then continue to confidently strong movement towards
initial pulse. So, lazy traders often to catch these
deep corrections used graph H1 and the previous motion pulse
pull Fibonacci grid. At the same time they can put pending orders Buy Limit or Sell Limit on Fibonacci lines, depending
the intended direction of rebound from Fibonacci level.
EXAMPLE 3 Tactics
swing trading. Of course, to trade at swing trading strategies
pending orders, you need a great experience to calculate the setting levels "traps". The essence of swing trading tactics
simple: buy low and sell high, that is, buy low and sell
up. The main thing is the short dashes. To this end, the trader determines
larger timeframe fletovyh portion, such as H1, and already at or M15 M5
begin to set "traps". The term "trap" refers to all types of
pending orders: Buy
Limit,
Buy
Stop,
Sell
Limit,
Sell
Stop.
The work is conducted at the edges
price range: top place an order to retreat Sell Limit, bottom - Buy Limit. In the middle of the price range,
any selected area MA, you can put an order on breakdown: Buy Stop and Sell Stop with short goals to edge
price range, where there are limit orders. Thus, the released mesh
four types of pending orders that a trader periodically adds,
corrects and removes.
remember, that
use a swing trading strategy is only recommended when clamped, fletovyh
site movement of the exchange rate. When you exit from the flat price, the trader has either
resting or apply a strategy of working with the trend.
Thus, we
Our training article discussed the types of pending orders and learned their
put in MT4 terminal. Also, you may be inspired by examples from
combinations of placing pending orders and come up with a "lethal"
combination. In any case, we wish you good luck in business, come to us for
the following useful lessons.
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