Entry Limit Gold Orders: Buy Entry Limit and Sell Entry Limit

Limit order definition - Entry limit is an order to buy or sell a Gold at a certain xauusd price which is a retracement level where xauusd price is predicted to pullback to before resuming the original Gold trend. Gold traders use them to buy or sell at better market gold price. These types of orders are available in most online trading platforms, for our example we will use the MT4 platform.

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

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

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

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

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

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

Buy Entry Limit Example

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

Limit buy order entry placed to buy below the current market gold price

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

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

Sell Entry Limit XAUUSD Order

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

Entry limit sell order placed to sell above the current market gold price

The xauusd price then rallied, went up to hit the sell entry limit, and afterwards xauusd price continued to move downwards in the direction of the original XAUUSD downward trend.

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

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

Setting Buy and Sell Limit XAUUSD Orders on MT4

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

Setting Buy and Sell Limit Gold Orders on MT4

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 gold 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 - Fibonacci Retracement Tutorial

Tip: in Gold 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 Fibonacci Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.

Fibonacci Expansion Tool Tutorial - Fibonacci Expansion Tool Tutorial