How to Use Limit Gold Orders: Buy Limit Gold Order vs Sell Limit Gold Order
Limit order definition - Entry limit is an order to buy or sell a Gold at a certain xauusd price which is a retracement level where xauusd price is predicted to pullback to before resuming the original Gold trend. Traders use limit gold orders to buy or sell at better market price. Buy Limit Gold Order vs Sell Limit XAUUSD Order - These types of limit gold orders are available in most online trading platforms, for our example we will use the MT4 platform.
Buy Limit Gold Order vs Sell Limit XAUUSD Order - An entry order of this type can be used to buy below the xauusd market level (upward trend retracement) or sell above the xauusd market level (downward trend retracement).
Buy limit - When buying, your entry buy limit is executed when the xauusd market falls to your set xauusd price. (retraces down) - buy limit order below market xauusd price
Sell limit - When selling, your entry sell limit is executed when the xauusd market rises to your set xauusd price. (retraces up) - sell limit order above market xauusd price
Entry orders are placed by traders when they expect xauusd price to bounce back after reaching this region.
- Buy Limit Gold Order Order buy at a level below the current market level.
- Sell Limit Gold Order Order sell at a level above the current market level.
Buy Limit Gold Order Example
In the buy limit order example illustrated and explained below, the buy limit order was placed to buy at a xauusd price below the current gold market price. Point B is the point at which it was set.
Buy Limit Gold Order Example - How to Use Limit Buy Orders - Limit Gold Order Buy Example - Limit Gold Order Trading Strategy
The xauusd price then retraced and went down to hit the buy limit order, and afterwards the xauusd price continued to move upwards in the direction of the original Gold upward xauusd trend. When the limit buy order was hit it changed to a buy order - How to Use Limit Buy Orders.
Gold Price Hits Buy Limit Gold Order, Limit Buy Order Now Changes to a Buy - How to Use Buy Limit Gold Orders
Sell Limit XAUUSD Order Example
In the sell limit order example illustrated and explained below a the sell limit order was placed to sell at a xauusd price above the current gold market price. This is the level for the xauusd price retracement.
Sell Limit Gold Order Example - How to Use Limit Sell Orders - Limit Gold Order Sell - Limit Gold Order Trading Strategy
The xauusd price then rallied, went up to hit the sell limit order, and afterwards the xauusd price continued to move downwards in the direction of the original xauusd trading downwards trend.
Gold Price Hits Sell Limit Gold Order, Sell Limit Gold Order Now Changes to a Sell - How to Use Sell Limit Gold Orders
When the xauusd price hit the set sell limit order level the order changed to a sell, this is therefore a good method to sell at a better xauusd price after a retracement.
Setting Limit Buy Order and Limit Sell Order on MT4
How to Use Limit Gold Orders - to set up these gold trading limit orders on the MT4 platform, Right click on Gold chart>>> Select "Trading">>> Then Select "New">>> Then on the popup window that appears (shown below), under the label "Type" select the option of "pending" instead of "market execution">>> Under the pending xauusd order options select the pending gold order type: for This xauusd trading example select either "Buy Limit Gold Order" or "Sell Limit Gold Order" depending on whether you want to place a pending buy limit order or a pending sell limit order.
How to Use Limit Gold Orders - Setting Limit Gold Order Buy and Limit Gold Order Sell on MT4
Sometimes, setting the point value to place your limit gold order can be calculated using a number of method, setting a limit gold order too far might mean your entry limit gold order not getting executed, the best gold trading tool and gold trading technique to use is Fibonacci retracement indicator and use the 38.2 % Fibonacci retracement levels. This fibonacci retracement level is used by many traders and entry limit gold orders tend to crowd at this Fibonacci retracement level, therefore the best gold strategy to place a gold trade would be to use the 38.2% Fibonacci retracement level. Fibonacci Retracement Tutorial for Setting Limit Gold Orders - Fibonacci Retracement Tutorial
