Entry Orders Confuse Me in Forex

[Tive]

I'm learning how to trade price action, and I'm getting confused by the different pending order types. Especially when setting entries for buy setups, sometimes I see people place orders below price, and sometimes above. I thought buy orders should always go above current price? Can someone explain this more clearly?

[Liabi]

That confusion is common at first, and it comes down to understanding what is buy limit in forex versus a buy stop. A buy limit is placed below the current market price — it's used when you expect price to drop to a certain level and then bounce back up. Say EUR/USD is at 1.1000, and you believe support is at 1.0960 — you place a buy limit at 1.0960 because you want to catch the bounce. It's all about getting in at a discount. This is different from a buy stop, which is placed above the current price and used to confirm upward momentum. Traders use buy limits when they think price will retrace before moving in the intended direction. It's great for range setups or pullback strategies. I use buy limits a lot when trading support zones or Fibonacci retracements. Once I started practicing with demo orders, the logic behind it really sank in. Just remember: buy limit = "wait for the dip and bounce."