A Wealth of Knowledge
A pending order is any order that is not set at the current market price and can only be honoured should the market trade to a specific price level. This is done when one is looking to enter the market however, it has not yet reached a specific price level where they want to take that particular trade. So what can place a pending order. There are 4 types of pending orders. Limit orders (Buy or sell) are reversal orders, this is selling in an uptrend or the opposite (should the market either hit support or resistance). and a stop order (buy or sell) are continuation orders.