Entry Limit XAUUSD Orders: Buy Entry Limit and Sell Entry Limit
Limit order definition - Entry limit is an order to buy or sell a XAUUSD Trading at a certain gold price which is a retracement level where gold price is predicted to pullback to before resuming the original XAUUSD trend. XAUUSD traders use them to buy or sell at better market price. These types of orders are available in most online trading softwares, for our example we shall use the MT4 trading software.
An entry of this type can be used to buy below the xauusd market level (up xauusd trend market retracement) or sell above xauusd market level (down xauusd trend xauusd market retracement).
Buy limit - When buying, your entry buy limit is executed when the xauusd market falls to your set gold price. ( price retraces down )
Sell limit - When selling, your entry sell limit is executed when the xauusd market rises to your set gold trading price. ( price retraces up )
Entry orders are placed by traders when they expect gold price to bounce back after reaching this zone.
- Entry Buy Limit XAUUSD Orderbuy at a level below the current market price.
- Entry Sell Limit XAUUSD Ordersell at a level above the current market price.
Buy Entry Limit Example
In the xauusd example shown below, the buy limit order was placed to buy at a gold price below the current market gold price. Point B is the point at which it was set.
Limit buy order entry placed to buy below the current market gold trading price
The gold trading price then retraced & went down to hit buy entry limit, & afterwards gold trading price continued to move upwards in the direction of the original XAUUSD upward trend. When limit buy order was hit it changed in to a buy.
XAUUSD Price hits buy limit, order now changes to a buy
Sell Entry Limit XAUUSD Order
In the xauusd example shown below a the sell entry limit was placed to sell at a gold price above the current market gold price. This is the level for the gold trading price retracement.
Entry limit sell order placed to sell above current market gold trading price
The gold trading price then rallied, went up to hit sell entry limit, and afterwards gold trading price continued to move downward in the direction of the original XAUUSD Trading downwards trend.
XAUUSD Price hits sell limit, order now changes to a sell
When xauusd quote hit the set level the order changed to a sell, this is therefore a nice technique to buy or sell at a better gold price after a price retracement.
Setting Buy and Sell Limit Gold Orders in MetaTrader 4 Software
To set up these xauusd orders on the MetaTrader 4 platform, Right click on XAUUSD Trading chart>>> Select 'Trading'>>> Then Select 'New'>>> Then on the popup window that appears (illustrated & shown below), under the label 'Type' select option of 'pending' instead of 'market execution'>>> Under the pending xauusd order options select the pending xauusd order type: for This trade select either "Buy Limit XAUUSD Order" or "Sell Limit XAUUSD Order" depending on whether you want to place a pending buy or sell.
Setting Buy & Sell Limit XAUUSD Orders on MT4 Software
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 Fibo retracement indicator and use the 38.2% retracement levels. This retracement level is watched by many traders & 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 - Fibonacci Retracement Tutorial
Tip: in XAUUSD 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 Gold Trading Fibo Retracement and Fibo expansion use the right navigation menu section Technical Analysis.
Fibonacci Expansion Tool Tutorial - Fibonacci Expansion Tool Tutorial
