Buy Entry Limit Bitcoin Order and Sell Entry Limit Bitcoin Order - How to Set Limit Pending Orders
Limit Order Definition - An entry limit is an order to buy/sell Bitcoin at certain price which is a pull-back area where the price is predicted to retrace to before it resumes the original trend. BTC/USD Crypto 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 up-ward trend) or to sell above the market level (during a pull-back in a downward trend).
Buy Limit - When buying, your entry buy limit is executed when market falls to price which you set. (Price retraces down)Sell Limit BTC/USD Order - When selling, your entry sell limit is executed when the market rises to price which you set. (Price retraces up)
Entry limit orders are set by Bitcoin traders when they expect the price to bounce back after reaching to the retracement level where they have set their limit orders.
Buy Limit Order to open buy at a level below the prevailing price
Sell Limit Bitcoin Trading OrderOrder to open sell at a level above the prevailing price
Buy Limit Example
In the example shown below a buy limit order was placed to buy Bitcoin at a price that was lower than the current market price - The buy limit order is set at point B.
Buy Limit Order Placed Below the Current Bitcoin 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 the price continued to move upward in direction of the original market trend like is shown below.
Buy Limit Order Executed - Order Now Changes to a Buy Trade
After the buy limit order was executed it then changed into a buy trade - the original upward trend then resumed and price continued heading upwards. A trader using this type of order buys at better price after a retracement. A trader should also know where is the best place to set these entry buy limit orders so that they do not set this pending order too far that the retracement doesn't reach their set order and they miss out on the trade and they should also not set it very close, Bitcoin traders should use Fibo Retracement zones to know where the best place is to set their entry buy limit orders.
Sell Limit Example
In the example shown below a sell limit order was placed to open sell at a price that was higher than the current market price - The sell limit order is set at point B.
Sell Limit Order Placed Above the Current Bitcoin 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 the price continued to move downward in direction of the original market trend like is shown below.
Sell Limit Order Executed - Order Now Changes to a Sell Trade
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. A trader using this type of sell limit order sells at better price after a retracement. A trader should also know where the best place is to set these entry sell limit orders so that they do not set this order to far such that the retracement doesn't get to their set order and they miss out on the trade and they should also not set it very close, traders should use Fibonacci Retracement zones to know where the best place is to set their entry sell limit orders.
Setting Buy & Sell Limit Orders on the MT5
To set up these BTCUSD CryptoCurrency trading orders in the MT5 platform software, RightClick in BTCUSD CryptoCurrency chart >>> Select "Trading" >>> Then Choose 'New' >>> Then on the popup panel that appears (illustrated below), under the label 'Type' choose option of 'pending' instead of "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 a trader want to place a pending buy/sell order.
Putting Limit Orders on MT5 Platform Software - Buy Limit and Sell Limit
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