Entry Limit Orders: Buy Entry Limit and Sell Entry Limit

Limit order definition - Entry limit is an order to buy or sell a Silver at a certain xagusd price which is a retracement level where price is predicted to pull back to before resuming the original trend. traders use them to buy or sell at better market xagusd price. These types of orders are available in most online platforms, for our example we will use MetaTrader 4 xagusd platform.

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

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

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

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

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

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

Buy Entry Limit Example

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

Limit buy order entry placed to buy below the prevailing market xagusd price

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

Price hits buy limit, order now changes to a buy

Sell Entry Limit Order

In the example explained and shown below a the sell entry limit was placed to sell at a price above the prevailing market xagusd price. This is the level for the price retracement.

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

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

Price hits sell limit, order now changes to a sell

When silver quote hit the set level the order changed in 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 Orders on MetaTrader 4 Platform

To set up these orders in MetaTrader 4 platform, Right-click on chart>>> Choose "Trading">>> Then Choose "New">>> Then on the popup window panel that pops up (shown below), under label "Type" choose the option of "pending" instead of "market execution">>> Under the pending xagusd order options choose the pending order type: For This trade select either "Buy Limit Order" or "Sell Limit Order" depending on whether you want to place a pending buy or sell.

Setting Buy and Sell Limit Orders on MetaTrader 4

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 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.

Fib Retracement Tutorial - Silver Fibo Retracement Guide

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

Silver Fibo Expansion Tool Tutorial - Silver Fibo Expansion Tool Guide