Buy Entry Limit XAUUSD Order and Sell Entry Limit XAUUSD Order - How to Set Entry Limit XAUUSD Trading Orders
Limit Order Definition - An entry limit is an order to buy or sell Gold at certain price that is a pullback level where price is predicted to pullback to before resuming the original trend. Traders use limit orders to buy/sell at a better price.
An entry order of this type can be used to buy below the market level (during a retracement in an upward trend) or to sell above the market level (during a pullback in a downward trend).
Buy Limit - When buying, your entry buy limitpending order is executed when the market falls to your set price. (Price retraces down)Sell Limit - When selling, your entry sell limitorder is executed when the market rises to your set price. (Price retraces up)
Entry limit orders are set by traders when they expect the price to bounce-back after reaching the retracement level where they use have set their orders.
Buy Limit Order to buy at a level below the ruling price
Sell Limit Order to sell at a level above ruling price
Buy Limit Example
In the example below a buy limit was placed to buy at a price that was lower than ruling price - The buy limit is set at point B.
Buy LimitPlaced Below the Current Price
The price then retraced and went down to hit the buy entry limit order. When the buy limit order was executed it changed into a buy trade - afterward price continued to move upward in the direction of the original market trend as shown below.
Buy LimitExecuted - 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 a 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 don't set this order to far that the retracement doesn't get to their set order and they miss out on the trade & they should also not set it very close, traders should use Fib Retracement levels to know where is best place to set their entry buy limit orders.
Sell Limit Example
In the example below a sell limit was placed to sell at a price that was higher than the ruling price - The sell limit is set at point B.
Sell LimitPlaced Above the Current Price
The price then rallied & went upto hit the sell entry limit order. When the sell limit order was executed it changed into a sell trade as illustrated below - afterward price continued to move downward in the direction of the original market trend as shown below.
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 order sells at a better price after a retracement. A trader should also know where is the best place to set these entry sell limit orders so that they don't set this order to far that the retracement doesn't get to their set order & they miss out on the trade and they should also not set it very close, traders should use Fibonacci Retracement levels to know where is best place to set their entry sell limit orders.
Setting Buy and Sell Limit Orders on MetaTrader 4 Platform
To setup these Gold trading orders on the MetaTrader 4 platform, RightClick on Forex chart>>> Select "Trading">>> Then Choose "New">>> Then on the pop-up window panel that appears (illustrated below), under label "Type" choose option of "pending" instead of "market execution">>> Under pending order options select pending order type: For This trade select either "Buy Limit" or "Sell Limit" depending on whether you as the trader want to place a pending buy or sell.
Placing Limit Orders on MetaTrader 4 - Buy Limit & Sell Limit
Learn More Courses & Tutorials:
- XAU USD Analysis Live XAU USD Charts
- How to Add Bollinger Bands Tecnical Indicator on Trading Chart
- Chaos Fractals MT5 Indicator Trading Analysis on Trading Charts
- How Do I Calculate Pips Value FTSE MIB 40?
- How Do I Find MT4 XAUUSD Platform on PC?
- EURNOK Opening Time & EURNOK Closing Time
- How Do I Analyze New Forex Order in MT4 iPad App?
- Forex Trade Stochastic Technical Indicator Settings
- Linear Regression Slope Automated Forex Expert Advisor EA
- How Do I Analyze Trading with Expert Advisor EAs?
