Trade Forex Trading

Entry Limit Orders: Buy Entry Limit & Sell Entry Limit

Limit order meaning - Entry limit is an order to buy or sell a XAUUSD at a particular price that is a retracement level where price is predicted to pull-back to before resuming original XAU/USD trend. XAU USD traders use them to buy or sell at a better market price. These types of trading orders are available in most softwares, for our example we shall use the MetaTrader 4 platform software.

An entry of this type can be used to buy below the market level (up trend market retracement) or sell above market level (down trend market retracement).

Buy limit - When buying, your entry buy limit order is executed/opened when the market price falls and drops to your set price. ( price retraces downward )

Sell limit - When selling, your entry sell limit order is executed/opened when the market rises to your set trading price. ( price retraces up )

Entry orders are placed by traders when they expect the price to bounce-back after reaching this level.

  • Entry Buy Limit buy at a price below ruling price.

  • Entry Sell Limit sell at a price level above ruling price.

Buy Entry Limit Example

In the exemplification shown below, the buy limit pending order was set to buy at a price below current market price. Point B is point at which it was set.

Buy Limit Order & Sell Limit Order - How Do You Trade Buy Limit Order?

Limit buy order entry placed to buy below current market price

The trading price then retraced & went down to hit buy entry limit, & afterwards gold trading price continued to move upwards in the direction of the original and initial XAUUSD upward trend. When limit buy order was hit it changed into a buy.

Entry Limit Order - How to Read a Buy Limit in Trading XAUUSD

XAUUSD Price hits buy limit, order now changes to a buy

Sell Entry Limit Order

In the exemplification shown below a the sell entry limit was set to sell at a price above the ruling market price. This is the level for the price retracement.

Pending Orders - What is a Sell Stop and Sell Limit Trading Pending Order?

Entry limit sell order placed to sell above current price

The market price then rallied, went upto hit sell entry limit, and afterwards gold trading price continued to move downwards in the direction of the original and initial XAUUSD downwards trend.

What is the Difference in XAUUSD between Sell Limit Order & Buy Stop?

XAUUSD Price hits sell limit, order now changes to a sell

When gold quote hit the set level & the trade order changed in to a sell, this is therefore a nice strategy to buy or sell at a better price after a price retracement.

Setting Buy & Sell Limit Orders in MetaTrader 4 Platform

To set up orders in the MetaTrader 4 software, right-click on the chart, select 'Trading', and then choose 'New'. A pop-up window will appear; in this window, select 'pending' under the 'Type' label instead of 'market execution'. For the pending order options, choose either "Buy Limit" or "Sell Limit" based on whether you wish to set a pending buy or sell order.

Buy Limit Order & Sell Limit Order - Place and Set a Buy Limit in MetaTrader 4 Software Platform

Placing Buy & Sell Limit Orders on MetaTrader 4 Software Platform

Sometimes, setting the point value to place your trade can be tricky, setting to far may mean your entry limit not getting executed, the best tool to use is Fibo retracement indicator and use the 38.2% retracement levels. This retracement level is watched by a lot of traders & entry orders tend to crowd at this level, thence the best odds to catch a position would be presented by using the 38.2% Fib retracement.

Fibo Retracement Tutorial - Fibonacci Retracement Lesson Guide

Tip: in XAUUSD online trading, If you as a trader want to set a good take profit order level (not retracement level, takeprofit level) for your trades you as a gold trader can use the Fib expansion 100% level for the best take profit area. To Read more on Gold Trading Fibo Retracement and Fibo expansion use the right navigating menu section Technical Analysis.

Fibo Expansion Tool Lesson - Fibonacci Expansion Tool Lesson

More Tutorials & Lessons:

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