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.

This kind of entry can be used to purchase below the current market price (when the market retraces in an uptrend) or sell above it (retracement in downtrend).

Buy Limit - When you buy, your buy limit order starts/opens when the price goes down and reaches the price you picked. (the price goes back down)

Sell limit - When you're selling, your sell limit order is carried out when the market price goes up to the price you set. (price goes back up)

Traders place buy orders when they anticipate that the price will experience a reversal subsequent to reaching a specified floor 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 subsequently corrected downwards, hitting the designated buy entry limit, after which the gold price resumed its ascent consistent with the initial upward XAUUSD trajectory. Upon being triggered, the limit buy order converted into an active 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 example below, the sell limit order sits above the current price. It marks a spot for price pullback.

Understanding Conditional Orders - Explaining Sell Stop and Sell Limit Pending Trade Orders

Entry limit sell order placed to sell above current price

The market price then went up quickly, hitting the sell entry limit, and after that, the price of gold trading kept going down as it was initially expected with the XAUUSD downward 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.

Set Buy Limit and Sell Limit Orders - Place Limits in MetaTrader 4 Platform

Placing Buy & Sell Limit Orders on MetaTrader 4 Software Platform

Sometimes, picking the point value to place your trade can be hard: setting it too far may mean your entry limit does not get executed: the best tool to use is the Fibo retracement indicator, and use the 38.2% retracement levels. Many traders watch this retracement level, and entry orders tend to gather at this level: so, using the 38.2% Fib retracement would give you the best chance to get a position.

Fibo Retracement Tutorial - Fibonacci Retracement Lesson Guide

Tip for XAUUSD trading: Set take-profit levels at the Fibonacci expansion 100% spot for best results. Skip retracement for this. Learn more on gold Fibonacci tools in the technical analysis menu.

Tutorial on the Fibonacci Expansion Tool

More Tutorials & Lessons:

XAUUSD Broker