Entry Limit Oil Trading Orders: Buy Entry Limit and Sell Entry Limit
Limit order definition - Entry limit is an order to buy or sell a Oil Trading at a certain crude oil price which is a retracement level where crude oil price is predicted to pullback to before resuming the original Oil trend. Oil traders use them to buy or sell at better market crude trading price. These types of orders are available in most online trading platforms, for our explanation example we will use the MT4 oil trading platform.
An entry of this type can be used to buy below the oil market level (up oil trend market retracement) or sell above the oil market level (down oil trend oil market retracement).
Buy limit - When buying, your entry buy limit is executed when oil market falls to your set crude oil price. ( price retraces down )
Sell limit - When selling, your entry sell limit is executed when oil market rises to your set crude trading price. ( price retraces up )
Entry orders are placed by oil traders when they expect crude oil price to bounce back after reaching this zone.
- Entry Buy Limit Oil Orderbuy at a level below the current market price.
- Entry Sell Limit Oil Ordersell at a level above the current market price.
Buy Entry Limit Example
In the oil example shown below, the buy limit oil order was placed to buy at a crude oil price below the current market crude oil price. Point B is the point at which it was set.
Limit buy order entry placed to buy below current market crude trading price
The crude trading price then retraced & went down to hit buy entry limit, & afterwards crude oil price continued to move upwards in direction of the original Oil Trading upwards crude oil trend. When the limit buy order was hit it changed into a buy.
Oil Price hits buy limit, order now changes to a buy
Sell Entry Limit Oil Trading Order
In the oil example shown below a the sell entry limit was placed to sell at a crude oil price above the current market crude oil price. This is the level for the crude trading price retracement.
Entry limit sell order placed to sell above current market crude trading price
The crude trading price then rallied, went up to hit sell entry limit, & afterwards crude oil price continued to move downwards in direction of the original Oil Trading downwards trend.
Oil Price hits sell limit, order now changes to a sell
When oil quote hit the set level the order changed to a sell, this is therefore a nice technique to buy or sell at a better crude oil price after a price retracement.
Setting Buy & Sell Limit Oil Orders in MetaTrader 4 Crude Trading Platform
To set up these oil orders on the MT4 software, Right Click on Oil Trading chart>>> Choose "Trading'>>> Then Select 'New">>> Then on the window pop up that appears (shown and illustrated below), under label 'Type' select the option of 'pending' instead of 'market execution'>>> Under the pending oil order options select the pending oil order type: For This trade select either "Buy Limit Oil Order" or "Sell Limit Crude Trading Order" depending on whether you want to place a pending buy or sell.
Setting Buy and Sell Limit Oil Orders in MetaTrader 4 Software
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 oil 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 - Crude Trading Fib Retracement Guide
Tip: In Oil 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 Crude Oil Fibo Retracement & Fibo expansion use the right navigation menu section Technical Analysis.
Oil Trading Fibonacci Expansion Tool Tutorial - Oil Fibo Expansion Tool Guide
