What's Difference between Buy Limit Gold Order and Buy Stop Gold Order?
What is Buy Limit XAUUSD Order?
A buy limit order is an order to buy gold at a better price after xauusd price has retraced from its current level.
A buy limit order is an order to buy at a lower xauusd price than the current xauusd price
A buy limit is only executed when the prices drops & retraces to the set buy limit level.
Entry Limit Gold Orders: Buy Entry Limit
Buy Limit Gold Order definition - Entry limit is an order to buy a Gold Trading at a certain xauusd price which is a retracement level where xauusd price is predicted to pull-back to before resuming the original Gold trend.
Traders use buy limit orders to buy at better market price. These types of buy limit pending orders are provided for in most of the online trading platforms, for our examples we will use MetaTrader 4 trading platform.
An entry buy limit order of this type can be used to buy below the xauusd market level (retracement in an up gold trend market).
Buy limit - When buying, your entry buy limit is executed when the xauusd market falls to your set xauusd price. ( retraces down )
Entry orders are placed by traders when they expect xauusd price to bounce back after reaching this level.
- Entry Buy Limit Gold Orderbuy at a level below the current market level.
Buy Entry Limit XAUUSD Order Example
In the xauusd example illustrated & explained below, the buy limit order was placed to buy at a xauusd price below the current market xauusd price. Point Marked B is the point at which it was set.
Buy Limit Gold Order Placed to Buy Below the Current Market Gold Price
The xauusd price then retraced and went down to hit the buy entry limit, and afterwards xauusd price continued to move upward in the direction of the original Gold upwards trend. When the limit buy order was hit it changed in to a buy order.
Gold Price Hits Buy Limit XAUUSD Order - Buy Limit Gold Orders Now Changes to a Buy Order
What's Buy Stop XAUUSD Order?
What Does Buy Stop XAUUSD Order Mean?
A Buy Stop Gold Order is an order to buy gold after the price rises to the set buy stop xauusd price level.
The buy stop pending order is always set to buy above existing market xauusd prices.
What is Buy Stop Gold Order Example?
In the examples explained and shown below a buy stop order was placed to buy at a level above current market xauusd price.
The xauusd price of the gold instrument then went up to hit the buy stop pending order, and afterward xauusd price continued to move upwards.
Setting Buy Stop Gold Order above Resistance Level - What's Buy Stop Gold Order?
The buy stop order is also used to set pending gold order when there's a consolidation pattern on a xauusd chart. The Buy stop order is used to set a buy order just above consolidation chart pattern as illustrated below so that if there is a xauusd price break out upward after the consolidation pattern then a new buy order is opened - by buy stop order once the buy stop xauusd price set is reached.
Setting Buy Stop Gold Order in a Gold Break out
A Buy trade was generated from the above buy stop order when the price broke a resistance area in first example and when there was an upwards xauusd price break out after a market consolidation chart pattern on second buy stop order example.
