Entry Limit Trading Orders: Buy Entry Limit and Sell Entry Limit

Limit order definition - Entry limit is an order to buy or sell a Energies at a certain price which is a retracement level where price is predicted to pullback to before resuming the original trend. traders use them to buy or sell at better market price. These types of orders are available in most of the online softwares, for our example we shall be using the MT4 energy 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 trading market retracement).

Buy limit - When buying, your entry buy limit is executed when the market falls to your set price. (retraces down)

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

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

• Entry Buy Limit Trading Orderbuy at a level below the current market level.

• Entry Sell Limit Trading Ordersell at a level above the current market level.

Buy Entry Limit Example

In the example illustrated and explained below, the buy limit order was placed to buy at a price below the prevailing market price. Point B is the point at which it was set.

Limit buy order entry placed to buy below the prevailing market price

The price then retraced & went down to hit buy entry limit, & afterwards energies price continued to move upward in the direction of the original Energies Trading upwards trend. When the limit buy order was hit it changed to a buy.

Price hits buy limit, order now changes to a buy

Sell Entry Limit Trading Order

In the example illustrated and explained below a the sell entry limit was placed to sell at a price above the prevailing market price. This is the level for the price retracement.

Entry limit sell order placed to sell above the prevailing market price

The price then rallied, went up to hit sell entry limit, & afterwards energies price continued to move downwards in the direction of the original Energies Trading downwards trend.

Price hits sell limit, order now changes to a sell

When energies quote hit the set level the order changed to a sell, this is therefore a nice method to buy or sell at a better energies price after a retracement move.

Setting Buy & Sell Limit Trading Orders on Meta Trader 4 Trading Software

To set up these trading orders on the MT4 platform, Right click on Energies Trading chart>>> Select 'Trading">>> Then Select "New'>>> Then on popup window that pops up (shown and illustrated below), under label "Type" select option of "pending" instead of "market execution">>> Under the pending order options choose the pending energy order type: For This trade choose either 'Buy Limit Trading Order' or 'Sell Limit Trading Order" depending on whether you want to place a pending buy or sell.

Setting Buy & Sell Limit Orders on Meta Trader 4 Platform

Sometimes, setting the point value to place your trade can be tricky, setting to far might mean your entry market limit not getting executed, the best tool to use is Fibonacci retracement indicator and use the 38.2 % retracement levels. This retracement level is watched by many traders and entry orders tend to crowd at this level, therefore the best odds to catch a trade would be presented by using the 38.2% Fibonacci retracement level.

Fibonacci Retracement Tutorial - Energies Trading Fibo Retracement Guide

Tip: In Energies online trading, If you want to set a good take profit level (not retracement level, take profit level) for your trades you can use the Fibonacci expansion 100% level for the best take profit area. To Read more on Energies Trading Fib Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.

Energies Trading Fib Expansion Tool Tutorial - Energies Fibo Expansion Tool Guide