# Elliott Waves Theory – Placing Pending Orders

## Where to Place Pending Orders with Elliott Waves Theory

The decision to trade with pending orders is one that should come after wave counting is completed on bigger time frames and patterns on those time frames indicate a specific outcome. Again, it is worth emphasizing here that counting or labeling waves should NEVER be made at current prices, as current price action needs to confirm the labeling on the bigger time frames. As mentioned so far here on our Forex Trading Academy, Elliott found that waves are of two types: impulsive and corrective. Based on the type of the move a market is making and where it is forming, pending orders can be used.

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### Using Pending Orders with Corrective Waves

When it comes to corrective waves, using pending orders is a bit more complicated. For this, one needs to know if a correction is a simple or a complex one, and upon clarifying that, pending orders can be used. In order to prepare for our next subjects to be covered on the Forex Trading Academy, the basic simple corrections will be listed here, illustrating the possibility to trade them with pending orders.
Pending Orders with Zigzags
A zigzag is a simple correction that has an a-b-c structure, and waves a and c are impulsive, while the b-wave is the only corrective wave. As a rule, the b-wave cannot end beyond 61.8% retracement when compared with the a-wave. Therefore, what traders do is to place pending sell limit orders (in a bearish zigzag) or buy limit ones (in a bullish zigzag) in order to find the perfect entry for the c-wave to come.
Pending Orders with Flats
Flats are the most complicated simple corrections as there are no less than ten types of flats the market can form. In a flat, that has an a-b-c structure as well, only the c-wave is an impulsive one, while waves a and b are corrective in nature.
As opposite to zigzags, the b-wave is mandatory to end beyond the 61.8% level. However, it is not recommended to use pending orders to trade the end of the b-wave in a flat as this one has virtually no limitations. It can easily exceed the start of the a-wave, and therefore one cannot find a safe place for a proper stop loss.
Pending Orders with Triangles
It is very simple to use a pending order when trading a triangle: all you have to do is to identify the b-d trend line and place a pending buy stop order (if the triangle is a bullish one) or a pending sell stop order (if a triangle is a bearish one). Stop loss should be set at the end of the e-wave.
The examples in this article are only meant to show you the importance of having a trading plan and using pending orders should be part of any trading plan. In turn, this would lead to profitable trades.

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