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 retracement level where the price is predicted to retracement to before resuming the original trend. Traders use limit orders to buy/sell at better price.
An entry order of this type can be used to buy below the market level (during a retracement in an upwards trend) or to sell above the market level (during a retracement in a downward trend).
Buy Limit - When buying, your entry buy limitpending order is executed/opened when the price drops to price that you set. (Price retraces downward)Sell Limit - When selling, your entry sell limit is executed/opened when the price rises to price that you set. (Price retraces upward)
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 open a buy trade at a price below the ruling price
Sell Limit Order to open a sell at a price above ruling price
Buy Limit Example
In the illustration below a buy limit was set to open a buy at a price which was lower than ruling price - The buy limit is set at point B.
Buy LimitPlaced Below the Current 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 price continued to move upward in the direction of the initial market trend like shown below.
Buy LimitExecuted - Order Now Changes to become a Buy Order
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. One should also know where is the best place to set these entry buy limit orders so that they don't set this order too far such that the retracement doesn't get to their set order and they miss out on the Gold trade & they should also not set it very close, traders should use Fibonacci Retracement levels to know where is best place to set their entry buy limit orders.
Sell Limit Example
In the illustration below a sell limit was put to open a sell at a price which 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 and shown below - afterward the price continued to move downwards in the direction of the initial market trend like 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 better price after a retracement. One should also know where is the best place to set these entry sell limit orders so that they don't place this order too far that the market retracement doesn't get to their set order & they miss out on the Gold 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 & Sell Limit Orders on MT4 Platform Software
To setup these Gold trading orders on the MT4 platform software, RightClick in Forex chart>>> Select "Trading">>> Then Choose & Select "New">>> Then on the pop-up window which 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 in MT4 Platform - Buy Limit & Sell Limit
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