How to use pending orders to trade profitably

Hello and welcome. When it comes to taking trades, to take advantage of opportunity in the market, there's one important icon we use to take trade, and that is the new order icon. So I click on the new order icon. Immediately I get to do that, it shows me the instrument I'm trying to trade. It shows me my volume, which is my lot size. It gets to show me my stop loss, my take profit, and there is one important type of execution I plan to use. And here I'm seeing being displayed instant execution. I am going to utilize instant execution if I can sight an opportunity at this point in time in the market, because instant execution allows me to either buy or sell at the current market price. So once I click on buy or sell, right away the order is delivered into the market. That is instant execution. But sometimes I do not want to buy or sell now. In that instance, I'm going to select what we call the pending order. So what is the meaning of pending order? This is an instruction to buy or sell an instrument when certain condition I am going to set ahead of time is met. So I want to buy or sell in the future. I am not buying or selling at this point in time, and that will lead us to the 4 types of pending order we have. So if you check on this type, you get to see, um, the 4 types of the pending order. I'm going to give us a pictorial illustration of these 4 types of pending order now. Yes, this is the pictorial illustration of the pending order. The first one is the buy stop. So as we can see it here, is an order to buy above current market price. So order placed above price and price keeps going up. You use a buy stop when you expect price to break above a certain range. And when it does, you are still expecting price to continue to surge northward. That is when a buy stop is used. The second one is a sell stop. A sell stop is an order to take a sell trade below current market price. You do not want to sell at this point in time because there is a force in view that might not allow price to come continue to trade to the downside. And one has it in mind that if price is able to go below or overcome that particular force in view, then definitely price will continue to go down. That is when we utilize the sell stop. And the other 2 are the buy limit and the sell limit. What is the difference between the stops and the limit? The first thing we have to note is that for the stop orders, you are expecting price to continue to move in the direction of price. The current direction of price is expected to continue to dominate the market. That's when you use the stop orders. But for the limit orders, you are expecting a change in direction. There may be a support or a resistance is going to act on price and change the direction of price. So what is a buy limit? In case of a buy limit, price is currently surging southward, price is going down, and one have a very strong support in view that whenever price is able to get to around the support, price should likely bounce to the upside from that support. So you buy below current market price. A buy below current market price is called a buy limit. And the last one is the sell limit. This one is a sell above current market prices. That's a sell off a resistance, that whenever price gets to the resistance, the resistance acts its name by resisting price from going, um, northward. So that pushes price southward. That's when we use a sell limit, where we expect a resistance to change the course of price and move it, um, southward. So let's quickly go to our charts now. So I'm going to take a move to the chart and try to show us when each of these will be applicable in the market. Um, this is my USD/CHF chart. And on this chart, previously I've seen price wave to the upside. At the first attempt, price got to around this zone and there was some rejection from around that zone. Price made another attempt around that zone, giving us a double top around that particular zone, which I can mark out this way. And at the second attempt, I discovered, or we can see here clearly, that price started moving southward. And at this point in time now, this is where price is now. Price is trying to gradually climb back up. And previously, since this particular price level has gotten to reject price before, there is a possibility that as price is rising now, whenever price is able to reattempt this particular zone, what happened on 2 occasions around this zone will likely repeat itself this time around. So in that case, what I'm going to use around this price level is a sell limit. So I'm going to sell above current market price so that when price trades up, trades as high as around this level, then this particular resistance zone is going to reject price and price starts to move to the downside. That's a sell limit in this instance. So if I want to take advantage of this move to take place in the future, I go to my new order, I pick pending order, and I change the type of execution from what is there at this point in time to a sell limit since I'm expecting price to trade southward from here. So it asks me at what price do I want to sell from, and this is the price around 0.92731. 0.92731, that's the price I want to sell from. And if I want to add TP to my trade, I get to add maybe around this low, that's 0.92300. 0.92300 could be my TP, and my stop loss would be above this range. Uh, so let me just look for a zone above the range, maybe around, uh, 15 to 20 pips above this resistance. So if I did add 15 to 31— uh, 15 to 731, 15 will give me around 850. So that would be 0.92850. So since I'm done, I click on place. So So I have been able to initiate this pending order. So price is already trading around the zone. So I expect— I still expect price to trade northward, get here, get rejected from around this zone, and move to the downside. That's for the sell limit. On this particular instrument, I can also still see the opportunity to take a buy limit. When price waved Um, southward the last time. The first point it got to this zone, it came back again to retest around that zone, and from that zone, uh, we are currently seeing price waving to the upside. So when price waves, it might wave and then eventually get to this level, and the other trade we have can take effect. But in case, uh, it gets back here and it's also coming back down according to what has happened, um, in this case and it comes back to retest this particular zone at a later time in the future. You could see here that around this zone in time past, even here, this is around the same zone, we've seen price waving, um, northward on 3 occasions. Uh, the first time was— this time was a bit minor, and this current one is what we are still experiencing on this instrument. And the last time Uh, before the— this recent period was around this zone. We see price, uh, waving as high as around the resistance, uh, we have actually utilized for our sell limit. So this particular zone this time around is going to be effective for our buy limit, that whenever price is able to wave back to the downside and get to around this level, then price is going to also get rejected from this support zone and wave back to the upside. So what I'm going to use at this point is what we are going to call a buy limit. So I go to my new order, I change this from instant execution to pending order, and already I have a buy limit here. The only thing I do— I should insert now is my price, that's 0.90913. That's the price I'm going to buy from in the future. And what's going to be my TP? My TP could be 0.91375, and my stop loss is just going to be some few pips below this support. So I can use 0.90755 as my stop loss in case this zone fails to reject price, then it gets to stop me out. At this particular stop-loss level which I've added. So I click on place. So I've added that other trade too. All these trades are still waiting for price to get to those levels, and when price eventually gets there, uh, what I am envisaging might eventually take effect on the instrument, and it's going to give me the opportunity, um, to, um, make some profit. From the ensuing trades. Um, now I'm going to look at the other 2 sides of, um, depending on that. Um, checking GBP/USD at this point in time, GBP/USD in the last, um, 6-7 hours thereabouts has actually been only trading within a narrow bound. It's been ranging. We've seen this instrument just ranging between this local resistance and this local support. Price has not been able recently now to go above here, and it has also not been able to go below here in recent time. But price cannot continue to wave within these 2 zones. Eventually, price is going to break outside of this range. So when that happens, and I might not be on my chart when that will eventually happen, so I can also utilize a pending order to take advantage of this expected breakout for the future. So the name of the pending order I'm going to use for this breakout is what we call the stop orders. So my buy stop is going to be above this resistance, and my sell stop is going to be below this resistance. How will the buy stop work? When price— if price eventually breaks outside of this resistance and continues to trade higher, It gets to trigger my buy and it continues to go up. That's for the buy stop. And if it breaks to the downside, it comes down, it breaks this support, triggers my sell, and then it continues to go southward. So let me quickly show us how to get to set the stop orders. So the similar way, I go to my new order. I change from instant execution to pending order. And this time I want to use the stop order. So I start with the buy stop. I can use this next price level, that's 1.36580. That's where I want to buy from. Once price breaks outside here and gets as high as 1.36580, it gets to turn it into a buy trade. And my TP at, say, 1. 1.3625, and my stop loss within this range. So I can use 1.36350 as my stop loss. That's 1.36350 as my stop loss. So I click place, and the trade is already reflecting on my chart. So you can see this is my buy stop position for this trade. This is my TP and this is my stop loss. In case price breaks outside of this range, it gets here, it triggers the buy. If it continues to go up, it gets to my TP and it closes for me profit. But in case it gets here and instead of it to continue to move, um, northward, it comes down, then I'm stopped out, uh, by the stop loss around this particular level. Next is now the sell stop. That is going to be below the support zone. So I go back to my new order, I change this also to pending order, and the type of pending order this time is a sell stop. So a sell stop at, say, 1.36120, and my TP before the last low, which is at 1 point 35890, and my stop loss within the range. So I can utilize, say, which price here? Say 1.36255, 1.362 55. So I click place, and depending on that, so it's waiting. Once price breaks below this support, it gets here, it triggers my sell. If it continues to go down, then it gets to my TP. But if there is a rejection after, um, price gets here, it gets to be stopped out at my stop loss. So this is how we would be utilizing the pending orders. To take advantage of moves that are yet to happen in the market. Thank you for being a part of this video. I look forward to having you around some other time, and if you have any suggestion on some other videos we could possibly record, you can drop that in the comment section. I would be working on that very soon. Thank you, see you some other time.