Entry Limit Metals Orders: Buy Entry Limit and Sell Entry Limit
Limit order definition - Entry limit is an order to buy or sell a Metals at a certain metals price which is a retracement level where metals price is predicted to pull-back to before resuming the original Metals trend. Metals traders use them to buy or sell at better market metals price. These types of orders are available in most online platforms, for our examples we will use MT4 metal trading platform.
An entry of this type can be used to buy below the metal market level (up metals trend market retracement) or sell above the metal market level (down metals trend metals market retracement).
Buy limit - When buying, your entry buy limit is executed when the metal market falls to your set metals price. ( retraces down )
Sell limit - When selling, your entry sell limit is executed when the metal market rises to your set metals price. ( retraces up )
Entry orders are placed by metals traders when they expect metals price to bounce back after reaching this level.
- Entry Buy Limit Metals Orderbuy at a level below the current market level.
- Entry Sell Limit Metals Ordersell at a level above the current market level.
Buy Entry Limit Example
In the metal examples illustrated & described below, the buy limit metals order was placed to buy at a metals price below the current market metals price. Point Marked B is the point at which it was set.
Limit buy order entry placed to buy below the current market metals price
The metals price then retraced and went down to hit buy entry limit, and afterwards metals price continued to move upwards in the direction of the original Metals upward metal trend. When the limit buy order was hit it changed into a buy.
Metals Price hits buy limit, order now changes to a buy
Sell Entry Limit Metal Order
In the metal trading example illustrated and explained below a the sell entry limit was placed to sell at a metals price above the current market metals price. This is the level for the metals price retracement.
Entry limit sell order placed to sell above the current market metals price
The metals price then rallied, went up to hit sell entry limit, and afterwards metals price continued to move downward in the direction of the original Metal downwards trend.
Metals Price hits sell limit, order now changes to a sell
When metals trading quote got to the set level the order changed into a sell, this is therefore a nice method to buy or sell at a better metals price after a retracement.
Setting Buy and Sell Limit Metal Orders in MT4 Software
To set up these metals orders in MetaTrader 4 platform, Right Click on Metals chart>>> Select "Trading'>>> Then Select 'New">>> Then on the pop up panel that pops up (illustrated below), under the label 'Type' select option of 'pending' instead of 'market execution'>>> Under the pending metal order options select the pending metal order type: For This trade select either "Buy Limit Metals Order" or "Sell Limit Metals Order" depending on whether you want to place a pending buy or sell.
Setting Buy & Sell Limit Metals Orders in MT4 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 metals 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 - Metals Trading Fibonacci Retracement Tutorial
Tip: In Metals 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 Metals Trading Fibo Retracement and Fibo expansion use the right navigation menu section Technical Analysis.
Metals Trading Fibonacci Expansion Tool Tutorial - Metals Fibonacci Expansion Tool Tutorial
