Are you tired of sitting in front of the chart for 10-12 hours a day? With pending orders, you do not have to wait for the market to make the desired move. The market works regardless of your presence and your order will be executed automatically.
We have already written on the Olymp Trade Wiki about pending orders. Today I will show you how they can be used in trading.
Key Takeaways🔑
| →Pending orders allow for more flexible trading, freeing traders from needing to constantly monitor the market. |
| →The setting of pending orders can be done at levels where price direction change is anticipated, including supply/demand zones, end of pinbars and support/resistance levels. |
| →Pending orders remain active on the server side even when the platform is closed, thus allowing for potential execution when desired price level is reached. |
Contents
How to set a pending order for Fixed Time Trades
Let’s start with a little reminder. Let’s assume that we predict that the price of the EURUSD pair will go up and when it reaches 1.1775 it will turn back.
When using a pending order, you do not have to sit at the chart and wait to open a trade. Just select the instrument and specify the price level at which you want to open a trade. Click “Order” on the right sidebar of your Fixed Time Trade interface. Then enter the price in the Quote window. You can also set a minimum payout rate for opening a position. Once you have confirmed with the Set-Up button, all that remains is to select Up or Down. The choice will depend on whether you anticipate a price increase or decrease when you reach the level that triggers the trade. Trade duration and trade size are taken from the main settings of the Fixed Time Trade interface on the right sidebar.
Once the order has been set, you can see it by clicking on the “Trades” section of the left menu and selecting the “Orders” tab. You will see all the elements of your order in the picture below. Here you have the name of the instrument, the direction of trade, the investment amount, the opening price, and the defined duration of the trade. If at any time you change your mind, in this window you can cancel your pending order.
Where exactly to set up pending orders
Of course, the best strategy is a working strategy. In short, the order should stand where you expect the price to change direction. Today I will offer you a 1-minute chart. My favorite instrument for this type of trading is the EURUSD, but you can also try on other liquid markets which charts behave technically.
Since the analysis comes from a 1-minute chart, I also set the trade length to 1 minute. I only want to capture the first price response to the level defined in the order. I am not interested in whether the trend will finally be reversed, but only whether the price will react with the level for a while (1 minute).
Look at the chart below. Think about why I set these 3 price levels.
Supply and demand zones
The level marked as L1 in our chart is the supply area. By identifying such lines it is important to determine where the price has started a very dynamic movement. It is very likely that if the price returns to this level, it will react with it because there is demand there. Demand and supply zones are a very interesting phenomenon. We will certainly elaborate on this topic in the future.
Price level clearly rejected by the market
The next level marked as L2 in our chart is the shadow of a large pinbar and the place where the market clearly showed a rejection of the price level. Previously the price reacted with it. I also attach below a picture of a trade triggered by a pending order at this level.
Support and resistance levels
The level marked as L3 is the classic price resistance level. We can see that in the past, the price clearly reacted with it by making large movements after touching the level. So it is worth following such points on the chart. History repeats itself. Take a look at the trade execution from this pending order below.
Pros and Cons
👍 Pros:
Saves time by not having to continuously monitor market movements.
Minimizes emotional impact on investment decisions.
Can be set up at various price levels according to the trading strategy.
👎 Cons:
Requires a solid understanding of market price levels and movements.
Not all price level predictions may be accurate.
Pending orders will execute when the specified price level is reached, regardless of any market changes.
| Types of Price Levels | Description |
|---|---|
| Supply and Demand Zones | Areas where the price has previously shown dynamic movement. The expectation is that if price returns to this level, it will react accordingly. |
| End of Pinbar’s Wick | The place where the market has clearly shown a rejection of the price level, possibly indicating a future price reaction. |
| Support and Resistance Levels | Areas where the price has clearly reacted before, making significant movements after touching the level. This can suggest future price responses at these levels. |
Pending orders – summary
Pending orders are not only about saving time. It is a convenient trading method which also allows minimizing the impact of emotions on investment decisions. You can set up several orders and go shopping or ride a bike.
IMPORTANT – orders waiting for Olymp Trade work on the server-side. This means that if you close the platform with an active pending order, it will be executed if the price reaches the set price level. Always check before closing, whether you want to leave the order or cancel it.
Every trader wishes to achieve the satisfactory performance of the trading. Therefore, before you start your adventure with pending orders, test everything in your demo account. If the results are positive, try your hand in real life. There are no 100% strategies. With a bit of work, you will gain enough experience to identify good price levels. Then just “set and forget”.
We wish you successful trading!
Q&A
Q: Can pending orders be used on all trading platforms?
A: Most trading platforms support the use of pending orders, but it’s best to check with your specific platform.
Q: How does a pending order know when to execute?
A: A pending order will execute when the specified price level is reached in the market.
Q: Can I cancel a pending order?
A: Yes, you can usually cancel a pending order before it executes.
Q: Are there risks associated with using pending orders?
A: As with all trading, there are risks involved. Price levels may not react as expected and orders will execute once the specified price level is reached, regardless of market changes.
Q: Can I use pending orders for long-term trades?
A: Yes, you can set pending orders for any trade duration according to your trading strategy.