Buy Entry Limit Order and Sell Entry Limit Order - How to Set Entry Limit Orders
Limit Order Definition - An entry limit is an order to buy or sell Gold at certain price that is a pull back area where price is predicted to retrace to before it resumes the original and initial trend. Traders use limit orders to buy or sell at better price.
An entry order of this type can be used to open a buy position below the market level (during a retracement in an upwards trend) or to sell above the market level (during a pull-back in a downward trend).
Buy Limit - When buying, your entry buy limitpending order is executed/opened when the market price falls and drops to your set price. (Price retraces down)Sell Limit - When selling, your entry sell limitpending order is executed when the market price rises to price which you set. (Price retraces up)
Entry limit orders are set by traders when they expect the price to bounce back after reaching the retracement level where they use have set their orders.
Buy Limit Order to open buy at a level below the prevailing market price
Sell Limit Order to open sell at a level above the current price
Buy Limit Example
In the exemplification below a buy limit pending was set to buy at a price that was lower than the prevailing market price - The buy limit order is set at point B.
Buy LimitPlaced Below the Current Market Price
The price then retraced & went down to hit the buy entry limit order. When the buy limit order was executed it changed into a buy trade - afterwards price continued to move upward in the direction of the original and initial price trend as shown below.
Buy Limit Executed - Order Now Changes to a Buy Order
After the buy limit order was executed it then changed into a buy trade - the original upward trend then resumed and price continued heading upward. One using this type of trading order buys at better price after a retracement. One should also know where is the best place to set these entry buy limit orders so that they don't set this pending order too far such that the retracement doesn't get to their set order and they miss out on the trade transaction and they should also not set it very close, traders should use Fibonacci Retracement levels to know where is best place which to set their entry buy limit orders.
Sell Limit Example
In the exemplification shown below a sell limit pending was set to sell at a price that was higher than the prevailing market price - The sell limit order is set at point B.
Sell LimitPlaced Above the Current Market Price
The price then rallied and went up to hit the sell entry limit order. When the sell limit order was executed it changed into a sell trade as shown below - afterwards price continued to move downward in the direction of the original and initial price trend as shown below.
After the sell limit order was executed it then changed into a sell trade - the original downward trend then resumed and price continued heading downwards. One using this type of order sells at better price after a price retracement. One should also know where is the best place to set these entry sell limit orders so that they do not place this order too far that the retracement doesn't get to their set order & they miss out on the trade transaction and they should also not set it very close, traders should use Fibonacci Retracement levels to know which point is best place to set their entry sell limit pending orders.
Setting Buy & Sell Limit Orders on MetaTrader 4 Software Platform
To set up these Gold trading orders on the MetaTrader 4 platform, Right Click on Forex chart>>> Choose "Trading">>> Then Choose "New">>> Then on the pop up panel that appears (portrayed below), under the label "Type" choose option of "pending" instead of the "market execution">>> Under the pending order options choose pending order type: for This trade select either "Buy Limit" or "Sell Limit" depending on whether you as the trader want to place a pending sell or buy.
Placing Limit Orders on MT4 - Buy Limit & Sell Limit
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