As far as the market is concerned, the pending order is an important content that cannot be ignored. The pending order is the number of waiting for buying and selling behind the five buying and selling prices that are transmitted from the exchange during the market trading hours. Together with the five buying and selling price levels, these ten data constitute the most primitive public data in the entire trading system. So, how should a foreign exchange novice place an order?
How should a foreign exchange novice place an order?
For example, the original selling orders were basically two digits, but suddenly all or almost all of the two digits turned into three digits. This is a typical sudden increase in pending orders. It is almost impossible for both longs and shorts to enter the operating state at the same time, so the sudden increase in pending orders is a typical unnatural trading state, which deserves our attention.
Conceptually speaking, receiving and selling orders mostly means that the transaction is relatively active, and the willingness of buyers and sellers to participate is very strong. But now these sell-offs appear suddenly, so this can only be done unilaterally by the main force. Obviously, it is impossible for the market to suddenly rush in a lot of buy orders or sell orders because of the sudden increase of pending orders, so it is meaningless for the main force to keep pending orders there. Orders are used for trading, so the main follow-up action must be to trade these orders by themselves, at least a considerable part of them.
When the main force trades on its own, it is the opposite, and the purpose of the opposite is often to raise the exchange rate . If we continue to observe, we will find that the trading began to be active, the trading volume was significantly larger than before, and the exchange rate rose. Of course, this is just an intraday preparatory rise period. It is a very small link and has a limited role in judging the future trend of the exchange rate, but if you are considering buying foreign exchange, this is a better buying point.
The sudden increase in pending orders generally occurs in the stabilization stage after the index falls during the intraday period. If the index then has a more violent fall, then even if the main force does not rise against the trend, at least it will maintain the original price and wait until the index stabilizes before rising. Since there is an obvious market-making illusion that the selling orders are linked together, and the main force will trade against each other, the main force should not be in the position-building period.