Buy Entry Limit Order and Sell Entry Limit Order - How to Set Entry Limit Orders

Limit Order Definition - An entry limit is an order to buy or sell Gold at certain price that is a pullback area where price is predicted to retrace to before it resumes the original trend. Traders use limit orders to buy or sell at a better price.

An entry order of this type can be used to open buy below the market level (during a retracement in an upward trend) or to sell above the market level (during a pullback in a downward trend).

Buy Limit - When buying, your entry buy limitpending order is executed when the market falls to your set price. (Price retraces down)Sell Limit - When selling, your entry sell limitpending order is executed when the market rises to your set price. (Price retraces up)

Entry limit orders are set by traders when they expect the price to bounce back after reaching the retracement level where they use have set their orders.

Buy Limit Order to buy at a level below the prevailing market price

Sell Limit Order to sell at a level above the current price

Buy Limit Example

In the example below a buy limit pending was placed to buy at a price that was lower than the prevailing market price - The buy limit order is set at point B.

Buy Entry Limit XAUUSD Trading Order and Sell Entry Limit XAUUSD Trading Order - How to Set Limit XAUUSD Trading Orders

Buy LimitPlaced Below the Current Market Price

The price then retraced & went down to hit the buy entry limit order. When the buy limit order was executed it changed into a buy trade - afterward price continued to move upward in the direction of the original price trend as shown below.

Buy Entry Limit Gold Trading Order and Sell Entry Limit Gold Trading Order - How to Set Entry Limit XAUUSD Orders

Buy LimitOrder Executed - Order Now Changes to a Buy Trade

After the buy limit order was executed it then changed into a buy trade - the original upward trend then resumed and price continued heading upward. A trader using this type of trading order buys at a better price after a retracement. A trader should also know where is the best place to set these entry buy limit orders so that they don't set this order to far that the retracement doesn't get to their set order and they miss out on the trade and they should also not set it very close, traders should use Fibonacci Retracement levels to know where is best place which to set their entry buy limit orders.

Sell Limit Example

In the example below a sell limit pending was placed to sell at a price that was higher than the prevailing market price - The sell limit order is set at point B.

Buy Limit Gold Order and Sell Limit Gold Order - How to Set Limit XAUUSD Pending Orders - Setting Pending Gold Orders

Sell LimitPlaced Above the Current Market Price

The price then rallied and went up to hit the sell entry limit order. When the sell limit order was executed it changed into a sell trade as shown below - afterward price continued to move downward in the direction of the original price trend as shown below.

Buy Limit Gold Order and Sell Limit Gold Order - How to Set Limit XAUUSD Orders - Setting Gold Pending Orders

After the sell limit order was executed it then changed into a sell trade - the original downward trend then resumed and price continued heading downwards. A trader using this type of order sells at a better price after a retracement. A trader should also know where is the best place to set these entry sell limit orders so that they do not set this order to far that the retracement does not get to their set order & they miss out on the trade and they should also not set it very close, traders should use Fibonacci Retracement levels to know which point is best place to set their entry sell limit pending orders.

Setting Buy & Sell Limit Orders on MetaTrader 4 Software

To set up these Gold trading orders on the MetaTrader 4 platform, Right Click on Forex chart>>> Choose "Trading">>> Then Choose "New">>> Then on the pop up window that appears (portrayed below), under the label "Type" choose option of "pending" instead of "market execution">>> Under the pending order options choose pending order type: for This trade select either "Buy Limit" or "Sell Limit" depending on whether you as the trader want to place a pending sell or buy.

How to Set Buy Limit Gold Trading Order and How to Set Sell Limit Gold Trading Order

Placing Limit Orders on MetaTrader 4 - Buy Limit & Sell Limit

Study More Lessons and Topics:

Trade Gold Trading

Buy Entry Limit Order and Sell Entry Limit Order - How to Set Entry Limit Orders

Buy Limit Example

Sell Limit Example

Setting Buy & Sell Limit Orders on MetaTrader 4 Software