How Do You Analyze Forex Pending Orders?
How Do You Trade Forex Pending Orders?
The pending orders are grouped into Pending Stop Orders and Pending Limit Forex Orders
Pending Stop Orders - What is Buy Stop Order & Sell Stop Order? - Pending Orders?
Pending Limit Forex Orders - What's Buy Limit Forex Order and Sell Limit Order? - Pending Orders?
What's Buy Stop Order & Sell Stop Order?
Buy stop orders and Sell stop orders are orders used to buy above or below current market forex price.
These forex orders are popularly used to trade when there is a consolidation chart pattern - placing a buy stop order to buy above the consolidation chart pattern and placing a sell stop order to sell below the consolidation pattern setup.
Buy Stop Order & Sell Stop Order after a Consolidation Setup
These stop orders are orders to buy above the market or to sell below the market.
- Buy Stop Order An order to open buy at a level which is above the current market forex price.
- Sell Stop Order An order to open sell at a level which is below the current market forex price.
What's Buy Stop Order & Sell Stop Order?
These buy stop orders and sell stop orders are used by traders wanting to trade a setup like the consolidation chart pattern but they don't want to wait & watch the forex prices all day long til there's a forex price breakout.
Therefore, traders will place these pending buy stop orders and sell stop orders above & below the current forex price and a forex price break out in any of these direction will open one of these pending stop orders and a buy trade or a sell trade will automatically be executed and opened.
Setting Buy & Sell Stop Orders on MT4
Open a Forex Trading Chart, Right Click on Chart, Choose New Forex Order, then follow guide-lines below
Step1: Select Pending order as illustrated & described below
Step2: Select Pending forex order Menu as Shown on the forex example below
Step3: Select Buy Stop Order or Sell Stop Order pending order
Step4: Click 'Place' Order and specify the buy stop price or sell stop price
Placing Buy Stop Orders and Sell Stop Orders in MT4
What is Buy Limit Forex Order and Sell Limit Order?
Limit order definition - Entry limit is an order to buy/sell a forex instrument at a certain forex price which is a pull back area where forex price is predicted to pull-back to before it resumes the original trend. Traders use them to buy/sell at better market price. These types of orders are available in most of online softwares, for our example we shall be using the MT4 fx software.
An entry of this type can be used to open buy below the market level (upward trend market pull back) or sell above market level (down ward trend market pull back).
Buy limit - When buying, your entry buy limit order is executed when market falls to your set forex price. (retraces downwards)
Sell limit - When selling, your entry sell limit order is executed when market rises to your set fx price. ( retraces upwards )
Entry orders are set by traders when they expect forex price to bounce back after reaching this zone.
- Entry Buy Limitbuy at a level below the current market level.
- Entry Sell Limit FX Ordersell at a level above the current market level.
Buy Limit Forex Order Example
In the forex example below, the buy limit was set to open buy at forex price below the ruling market forex price. Point B is point that it was set.
Trade Pending Orders
Sell Limit Forex Order Example
In the forex example below a the sell entry limit forex order was placed to sell at a forex price above the ruling market forex price. This is the level for the forex price pull back.
Trade Pending Orders
When forex instrument forex price quote hit the set level the forex order changed to a sell, this is therefore a good method to buy or sell at a better forex price after a pull back.
Setting Buy & Sell Limit Forex Orders on MT4
To set up these Forex orders in MetaTrader 4 platform, Right-Click on Forex chart>>> Select "Trading'>>> Then Choose 'New" Order>>> Then on the popup window that appears (shown below), under label 'Type' select the option of "Pending" order instead of 'market execution'>>> Under the forex pending order options select the forex pending order type: for This trade select either "Buy Limit Forex Order" pending forex order or "Sell Limit FX Order" pending forex order depending on whether you want to place a pending buy or sell order.
Placing Buy Limit Forex Orders and Sell Limit Orders on MT4
How Do I Analyze Forex Pending Orders?
