Buy Entry Limit Order and Sell Entry Limit Order - How to Set Limit Pending Orders
Limit Order Definition - An entry limit is an order to buy or sell Bitcoin at certain price which is a retracement level where price is predicted to pullback to before resuming the original trend. Bitcoin traders use limit orders to buy or sell at a better price.
An entry order of this type can be used to buy below the market level (during a retracement in an upwards trend) or to sell above the market level (during a pullback in a downward trend).
Buy Limit Order - When buying, your entry buy limit order is executed when the market falls to your set price. (Price retraces down)Sell Limit BTCUSD Trading Order - When selling, your entry sell limit order is executed when the market rises to your set price. (Price retraces up)
Entry limit orders are set by Bitcoin traders when they expect the price to bounce back after reaching the retracement level where they have set their limit orders.
Buy Limit OrderOrder to buy at a level below the current market price
Sell Limit Bitcoin Trading OrderOrder to sell at a level above the current market price
Buy Limit Example
In the example below a buy limit order was placed to buy Bitcoin at a price that was lower than the current market price - The buy limit order is set at point B.
Buy Limit Order Placed Below the Current Bitcoin Price
The price then retraced and went down to hit the buy entry limit order. When the buy limit order was executed it changed into a buy trade - afterwards price continued to move upward in direction of the original market trend as shown below.
Buy Limit Order Executed - Order Now Changes to a Buy Trade
After the buy limit order was executed it then changed into a buy trade - the original upward trend then resumed and price continued moving upwards. A trader using this type of order buys at a better price after a retracement. A trader should also know where is the best place to set these entry buy limit orders so that they do not set this order too far that the retracement does not get to their set order and they miss out on the trade and they should also not set it very close, Bitcoin traders should use Fibonacci Retracement levels to know where the best place is to set their entry buy limit orders.
Sell Limit Example
In the example below a sell limit order was placed to sell at a price that was higher than the current market price - The sell limit order is set at point B.
Sell Limit Order Placed Above the Current Bitcoin Price
The price then rallied and went up to hit the sell entry limit order. When the sell limit order was executed it changed into a sell trade as shown below - afterwards price continued to move downward in direction of the original market trend as shown below.
Sell Limit Order Executed - Order Now Changes to a Sell Trade
After the sell limit order was executed it then changed into a sell trade - the original downward trend then resumed and price continued moving downwards. A trader using this type of sell limit order sells at a better price after a retracement. A trader should also know where the best place is to set these entry sell limit orders so that they do not set this order to far such that the retracement does not get to their set order and they miss out on the trade and they should also not set it very close, traders should use Fibonacci Retracement levels to know where the best place is to set their entry sell limit orders.
Setting Buy and Sell Limit Orders on MetaTrader 5
To set up these Bitcoin trading orders in the MetaTrader 5 platform, Right click on Bitcoin chart >>> Select "Trading" >>> Then Select 'New' >>> Then on the popup window that appears (illustrated below), under the label 'Type' select option of 'pending' instead of "market execution" >>> Under the pending order options choose pending order type: for This trade select either "Buy Limit" or "Sell Limit" depending on whether you want to place a pending buy or sell order.
Setting Limit Orders in MT5 - Buy Limit and Sell Limit
