I would like to show you a good example explaining why we should use pending orders for entry the markets above/below important zones. Several days ago I wrote about possible trading opportunity for Ethereum
Classic. You can find this post in related ideas. I wrote that the price bounced from the resistance zone
which was formed by SMA100, the downtrend line and 11.00 resistance level
. We got a new swing high as an important level for placing pending orders for buy. And now we can see that this idea was right. Buy orders allowed us to entry this market on time. You could miss this trading opportunity just trying to get the better level for entry and more solid signals for buying. The price reversed and moved upward very quickly. The 1st profit target was reached and we made some profit. If you can't monitor the markets 24/7, using pending orders and important zones is a good way out for catching price movements on time. How to do it correctly? If we have bearish
markets like in this example, we should place buy orders above the local swing highs, downtrend lines, resistance levels. If we have bullish
markets, we should place pending orders for sell below the local swing lows, uptrend lines, support levels. When the price breaks such zones, we should expect for strong price movements in the direction of breakouts. It's good strategy for entry and you can use it on any markets and time frames. Just don't forget about proper money management and you will be in profit in long run.