Entry Limit Commodity Trading Orders: Buy Entry Limit and Sell Entry Limit
Limit order definition - Entry limit is an order to buy or sell a Commodity Trading at a certain commodities trading price which is a retracement level where commodities trading price is predicted to pull back to before resuming the original Commodities trend. Commodities traders use them to buy or sell at better market commodities trading price. These types of orders are available in most online trading platforms, for our examples we will use the MT4 commodities trading platform.
An entry of this type can be used to buy below the commodity market level (up commodity trend market retracement) or sell above commodity market level (down commodity trend commodities trading market retracement).
Buy limit - When buying, your entry buy limit is executed when the commodity market falls to your set commodities trading price. ( price retraces down )
Sell limit - When selling, your entry sell limit is executed when the commodity market rises to your set commodities price. ( price retraces up )
Entry orders are placed by commodity traders when they expect commodities trading price to bounce back after reaching this zone.
- Entry Buy Limit Commodity Trading Orderbuy at a level below the current market level.
- Entry Sell Limit Commodity Trading Ordersell at a level above the current market level.
Buy Entry Limit Example
In the commodity example illustrated and explained below, the buy limit commodity order was placed to buy at a commodities trading price below the current market commodities trading price. Point B is point at which it was set.
Limit buy order entry placed to buy below the current market commodities trading price
The commodities trading price then retraced and went down to hit the buy entry limit, and afterwards commodities trading price continued to move upwards in direction of the original Commodity Trading upward commodities trend. When the limit buy order was hit it changed to a buy.
Commodities Price hits buy limit, order now changes to a buy
Sell Entry Limit Commodity Trading Order
In the commodity example illustrated and explained below a the sell entry limit was placed to sell at a commodities trading price above the current market commodities trading price. This is the level for the commodities trading price retracement.
Entry limit sell order placed to sell above the current market commodities trading price
The commodities trading price then rallied, went up to hit the sell entry limit, and afterwards commodities trading price continued to move downwards in direction of the original Commodity Trading downward trend.
Commodities Price hits sell limit, order now changes to a sell
When commodity quote hit the set level the order changed to a sell, this is therefore a nice method to buy or sell at a better commodities price after a price retracement.
Setting Buy & Sell Limit Commodity Trading Orders on MT4 Software
To set up these commodities trading orders on the MT4 platform, Right-click on Commodity Trading chart>>> Choose 'Trading'>>> Then Choose 'New'>>> Then on window pop up that appears (shown and illustrated below), under label 'Type' choose the option of 'pending' instead of 'market execution'>>> Under the pending commodity order options select the pending commodity order type: For This trade select either "Buy Limit Commodity Trading Order" or "Sell Limit Commodities Trading Order" depending on whether you want to place a pending buy or sell.
Setting Buy & Sell Limit Commodities Trading Orders on MT4 Platform
Sometimes, setting the point value to place your trade can be tricky, setting to far might mean your entry market limit not getting executed, the best tool to use is Fibonacci retracement indicator and use the 38.2 % retracement levels. This retracement level is watched by many commodity traders and entry orders tend to crowd at this level, therefore the best odds to catch a trade would be presented by using the 38.2% Fibonacci retracement level.
Fibonacci Retracement Tutorial - Commodities Trading Fibonacci Retracement Guide
Tip: In Commodities online trading, If you want to set a good take profit level (not retracement level, take profit level) for your trades you can use the Fibonacci expansion 100% level for the best take profit area. To Read more on Commodity Fibonacci Retracement & Fibonacci expansion use the right navigation menu section Technical Analysis.
Commodity Trading Fibonacci Expansion Tool Tutorial - Commodity Trading Fibo Expansion Tool Guide
