Finding the problem of placing proper SL and pending order level and Steps to solve out the problem.
Sometime you may see that you order doesn’t triggered though the price reach the level or sometime you may see that you SL triggered earlier though the chart price don’t reach the level. And when you see that the price is going the profit zone, but you can’t make a profit and this make you so worry. Read the below article carefully to know the cause of this and how to overcome this problem.
We have posted earlier on Proper Stop Loss placing following article will give an even clearer view.
Pre defined Orders: First, you have to get an idea on some predefined orders. Such orders are Stop Loss, Take Profit & Pending Order.
When a pre defined order level (e.g. SL, TP or Pending Order) is staying above the current price and is going to hit the level. Then it hit few pips earlier depending on spread though the chart price is still isn’t reaching the level.
When a pre defined order level (SL,TP or pending order) is below the current price and is going to hit then it hit few pips later depending on spread though the chart price reach the level.
This can create problem in two types of trading:
1) At the time of setting SL of a sell order:
In this case the SL level is above the current price level and it will hit earlier, though the chart price will not reach the level and make you out of the trade.
How to Overcome: To overcome the situation you need to add spread to the SL. Or you can simply close the trade manually at the given SL level.
2) At the time of setting buy pending limit order:
In this case the order level is below the current price level. Though the chart price reaches the level it may not hit your order because of the spread.
How to Overcome: In this situation you need to add the spread to the order level to get triggered at the proper price. Or you can simply execute it manually at the given price range of order.
Every trader must have to know this in order to proper trading. Wherever you trade you will be benefited if you know this. We have written some more insights also in our “Trade Management Guide” for premium Forex Signals members. That is instantly available to download after subscribing our any signal packages.