Entry Bitcoin Order in Bitcoin and Limit Bitcoin Order in Bitcoin
Limit order definition - Entry limit is an order to buy or sell a Bitcoin at a certain bitcoin price which is a retracement zone where bitcoin price is predicted to pull back to before resuming the original Bitcoin trend. Bitcoin traders use them to buy or sell at better market bitcoin price. These types of trading orders are available in most online platforms, for our example we will be using the MT4 btcusd crypto software.
An entry of this type can be used to buy below the btcusd market level (up bitcoin trend market retracement) or sell above the btcusd market level (down bitcoin trend market retracement).
Buy limit - When buying, your entry buy limit pending order is executed/opened when the bitcoin crypto market falls to your set btcusd crypto price. ( price retraces down )
Sell limit - When selling, your entry sell limit pending order is executed/opened when the bitcoin market rises to your set bitcoin price. ( price retraces up )
Entry orders are set by bitcoin traders when they expect bitcoin crypto price to bounce back after reaching this area.
- Entry Buy Limit Bitcoin Crypto Currency Orderbuy at a level below the prevailing market level.
- Entry Sell Limit Bitcoin Ordersell at a price point above the prevailing market level.
Buy Entry Limit Example
In the example shown below, buy limit btcusd crypto order was set to open buy at a btcusd crypto price below the current market bitcoin price. Point B is level at which it was set.
Limit buy order entry placed to open buy below the prevailing market bitcoin price
The bitcoin cryptocurrency price then retraced and went down to hit the buy entry limit, & afterwards bitcoin price continued to move upwards in direction of the original Bitcoin upward trend. When limit buy order was hit by price it changed into a buy.
Bitcoin Crypto Currency Price touches buy limit, order now changes to a buy
Sell Entry Limit Bitcoin Order
In the exemplification illustrated below the sell entry limit was set to open sell at a bitcoin price above the current market bitcoin price. This is the level for the bitcoin price retracement.
Entry limit sell order placed to open sell above the prevailing market bitcoin price
The bitcoin crypto price then rallied, moved upto hit sell entry limit, & afterwards bitcoin price continued to move downward in direction of the original Crypto Currency downwards trend.
Bitcoin Price hits the sell limit, order now changes to a sell
When bitcoin quote got to the set level the order changed in to a sell, this is therefore a nice method to buy or sell at a better bitcoin price after a price retracement.
Setting Buy & Sell Limit BTCUSD Orders in MT4 Platform Software
To setup these orders in MT4 platform software, RightClick in Bitcoin chart>>> Select 'Trading'>>> Then Choose 'New'>>> Then on the pop up panel that shows up (portrayed below), under the label 'Type' select the option of 'pending' instead of 'market execution'>>> Under the pending cryptocurrency order options choose the pending cryptocurrency order type: for This trade choose either "Buy Limit BTC/USD CryptoCurrency Order" or "Sell Limit BTC/USD Crypto Order" depending on whether you as a trader want to place a pending buy or sell.
Placing Buy & Sell Limit Crypto Orders on MT4 Platform Software
Sometimes, setting the point value where to place your position can be tricky, setting to far might mean your entry limit not getting executed, the best tool to use is Fib retracement technical indicator & use the 38.2 % retracement levels. This retracement level is watched by many bitcoin traders and entry orders will tend to accumulate at this level, therefore the best odds to catch a trade would be presented by using the 38.2% Fib retracement level.
Fibo Retracement Tutorial Guide - Fibo Retracement Guide
Tip: in Bitcoin online trading, If you as a trader want to set a good takeprofit level (not retracement level, take profit order level) for your trades you can use the Fib expansion 100% level for the best take profit area. To Read more on BTCUSD Fib Retracement and Fib expansion use the right navigating menu section Technical Analysis.
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