Trade Gold Trading

Limit Entry Orders: Buy Entry Limit & Sell Entry Limit

Limit order definition - A buy or sell order for Gold at a specified gold trading price is an entry limit order, which is a pull-back region where the price is expected to retrace to before going on to continue the initial trend. Traders buy or sell with them for a better price. Most of the online platforms provide these kinds of trade orders: for our examples we will utilize the MetaTrader 4 platform.

This kind of entry can be used when you buy below the current price in an uptrend market (market pullback) or sell above the current price in a downtrend market (market pullback).

Buy limit - When buying, your entry buy limit order happens when the market drops to your chosen xauusd trading price. ( price goes down )

Sell limit - If you're selling, your order to sell at a limit is done when the market goes up to the price you picked. (price goes back up)

Traders place entry orders at this specific level when they anticipate the xauusd trading price will rebound following its arrival there.

  • Entry Buy Limitbuy at a point below current market level.

  • Entry Sell Limitsell at a price point above present market level.

Buy Entry Limit Order Example

In the illustrated example below, a buy limit order was placed below the current market price at point B for a better entry opportunity.

Buy Limit Order vs Sell Limit Order - What is a Buy Limit?

Limit buy order entry placed to open a buy below the present market trading price

Price pulled back and dropped to the buy limit entry. After that, it rose again along the original gold uptrend. Once price hit the limit buy order, it turned into an active buy.

Buy Limit Pending Order Meaning & Examples - How Do I Interpret a Buy Limit Order in Gold Trading?

Price reaches the buy limit, so the order turns into a buy.

Sell Entry Limit Order

In the picture that is depicted and explained below, a sell entrance limit was established that was higher than the current market price. At this point, prices start to retrace.

Buy Limit Order vs Sell Limit Order - Sell Limit Gold vs Buy Stop Gold

An entry limit sell pending order is set to open a sell position above the current market trading price.

The market price then rallied, headed upward to hit sell entry limit, and afterwards trading price continued to move downwards in direction of the initial downwards trend.

Sell Limit Order Explanation and Example

Upon the price reaching the established sell limit, the pending order immediately converts to an active sell position.

When the gold price reached the set point, the order turned into a sell, making it a good way to buy or sell at a better price after a price pullback.

Setting Buy & Sell Limit Orders on MT4 Platform Software

To set up these orders on MT4 software, Right-Click on chart>>> Select "Trading">>> Then Choose & Select "New">>> Then on the pop-up window that pops up (portrayed below), under label "Type" select and choose the choice/option of the "pending" instead of the "market execution">>> Under the pending order options select the pending order type: for This trade select either "Buy Limit" or "Sell Limit " depending on whether you as a trader want to place a pending sell or buy.

Trade Change the Trading Order Type Execution from Market Execution Order to Pending Order

Putting Buy & Sell Limit Orders on MT4 Platform

Sometimes, setting the point value where to place your trade position can be tricky, setting to far may & might mean your entry limit order not getting executed, the best tool to use is Fibo retracement trading indicator & use the 38.20 % retracement levels. This retracement level is watched by a lot of traders and entry orders tend to congregate at this technical level, thence the best odds to catch a trade position would be presented by using the 38.2% Fibonacci retracement.

Guide on Fibonacci Retracement Principles - In-Depth Tutorial on Fibonacci Retracement Application

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

Lesson on the Fibonacci Expansion Tool - Tutorial for the Fibonacci Expansion Tool

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