In this strategy we will use pending orders to trade currency in the Forex market.
Recommended instruments for trading: EUR/USD
In order to place pending orders we will use closing price of the previous day. From this price we will place our pending orders: BUY STOP and SELL STOP at the distance of 32 points.
The level of Take Profit: 35 points
The level of Stop Loss: 28 points.
We can also roll over the position for the next day in order to receive more points. However, in this case we should move Stop Loss into the break-even zone and do not place Take Profit.
Example of placing a pending order
For example, the price of the previous day was 1.1516.
The level of BUY STOP will be calculated as follows: closing price of 1.1516 + 32 points = 1.1548
The level of SELL STOP will be calculated as follows: closing price of 1.1516 - 32 points = 1.1484
It is important to place pending orders in a few hours at the moment when the closing of the previous day takes place. If none of the orders have been activated within a day, pending orders will be cancelled.