Entry Limit Oil Trading Orders: Buy Entry Limit and Sell Entry Limit

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

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

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

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

Entry orders are placed by oil traders when they expect price to bounce back after reaching this zone.

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

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

Buy Entry Limit Example

In the example shown below, the buy limit order was placed to buy at a price below the current market price. Point B is the point at which it was set.

Limit buy order entry placed to buy below current market crude price

The crude trading price then retraced & went down to hit buy entry limit, & afterwards price continued to move upwards in direction of the original Oil Trading upwards trend. When the limit buy order was hit it changed into a buy.

Price hits buy limit, order now changes to a buy

Sell Entry Limit Oil Trade Order

In the example shown below a the sell entry limit was placed to sell at a price above the current market price. This is the level for the crude price retracement.

Entry limit sell order placed to sell above current market crude price

The crude trading price then rallied, went up to hit sell entry limit, & afterwards price continued to move downward in direction of the original Oil Trading down-wards trend.

Price hits sell limit, order now changes to a sell

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

Setting Buy & Sell Limit Oil Orders in Meta Trader 4 Trading Platform

To set up these orders on the MT4 software, RightClick on Oil Trading chart>>> Choose "Trading'>>> Then Select 'New">>> Then on the window pop up that appears (shown and illustrated below), under label 'Type' select the option of 'pending' instead of 'market execution'>>> Under the pending order options select the pending order type: For This trade select either "Buy Limit Oil Order" or "Sell Limit Oil Trading Order" depending on whether you want to place a pending buy or sell.

Setting Buy and Sell Limit Oil Orders in Meta Trader 4 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 oil 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.

Fibo Retracement Tutorial - Oil Trading Fib Retracement Guide

Tip: In Oil 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 Crude Oil Fibo Retracement & Fibo expansion use the right navigation menu section Technical Analysis.

Oil Trading Fibo Expansion Tool Tutorial - Oil Fibo Expansion Tool Guide