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