How to Use Limit Orders: Buy Limit Order vs Sell Limit Order

Limit order meaning - Entry limit order is an order to buy or sell a Gold at a certain price that is a pull-back level where the price is predicted to pull-back to before it resumes the original trend. Traders use limit pending orders to buy/sell at a better price. Buy Limit Order vs Sell Limit Order - These types of limit orders are available in most online trade platforms, for our examples we will use MT4 software.

Buy Limit Order vs Sell Limit Order - An entry order of this type can be used to open buy below the market level (upward trend retracement) or sell above the market level (downward trend retracement).

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

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

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

Buy Limit Order buy at a level below the ruling market level.

Sell Limit Order sell at a level above current market level.

Buy Limit Order Example

In buy limit order example depicted and explained below, the buy limit was set to open buy at a level below the ruling price. Point B is the point at where it was set.

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The price then retraced & went down to hit the buy limit, and afterward price continued to move upwards in the direction of the initial upward trend. When limit buy order was hit by price it changed to a buy order - How to Use Limit Buy Orders.

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Sell LimitExample

In sell limit order example illustrated and explained below a the sell limit order was set to sell at a price above the current market price. This is the level for price retracement.

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The price then rallied, moved up to hit the sell limit order, & afterward price continued to move downwards in the direction of the initial downward trend.

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Price Hits Sell Limit Order, Sell Limit Order Now Changes into a Sell - How to Use Sell Limit Orders

When the price hit the set sell limit pending order level and the pending order changed into a sell, this is therefore a good strategy to sell at a better price after a pull-back.

Setting Limit Buy Order and Limit Sell Order on the MT4 Platform

How to Use Limit Orders - to set up these gold limit orders in MT4 platform software, Right Click on chart>>> Choose 'Trading'>>> Then Choose 'New'>>> Then on the pop-up panel window that appears (illustrated below), under label 'Type' choose the option of 'pending' instead of the 'market execution'>>> Under the pending order options choose the pending order type: for This example choose either "Buy Limit" or "Sell Limit " depending on whether you as a trader want to place a pending buy limit order or a pending sell limit.

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How Do I Use Limit Orders - Setting Limit Order Buy and Limit Order Sell on MT4 Platform Software

Sometimes, setting the point value to place your limit pending can be calculated using a number of method, setting a limit order too far may mean your entry limit pending not getting executed, the best tool and gold technique to use is Fibonacci retracement trading indicator and use the 38.2 % Fib retracement levels. This Fib retracement level is used by many traders & entry limit orders tend to crowd at this Fibo retracement level, therefore the best strategy to place a trade would be to use the 38.2% Fib retracement level. Fibonacci Retracement Tutorial Course for Setting Limit Orders - Fibonacci Retracement Course

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How to Use Limit Orders: Buy Limit Order vs Sell Limit Order

Buy Limit Order Example

Sell LimitExample

Setting Limit Buy Order and Limit Sell Order on the MT4 Platform