Entry Order in Bitcoin and Limit Order in Bitcoin
Limit order definition - Entry limit is an order to buy or sell a Bitcoin at a certain bitcoin trading price which is a retracement level where price is predicted to pull back to before resuming the original Bitcoin trend. Bitcoin traders use them to buy or sell at better market bitcoin trading price. These types of orders are available in most online trading softwares, for our example we will be using the MT4 bitcoin trading software.
An entry of this type can be used to buy below the btcusd trading market level (up bitcoin trend market retracement) or sell above the btcusd trading market level (down bitcoin trend cryptocurrency market retracement).
Buy limit - When buying, your entry buy limit is executed when the btcusd trading market falls to your set bitcoin trading price. ( price retraces down )
Sell limit - When selling, your entry sell limit is executed when the btcusd trading market rises to your set price. ( price retraces up )
Entry orders are placed by traders when they expect bitcoin trading price to bounce back after reaching this zone.
- Entry Buy Limit Orderbuy at a level below the current market level.
- Entry Sell Limit Ordersell at a level above the current market level.
Buy Entry Limit Example
In the cryptocurrency trading example illustrated below, the buy limit bitcoin order was placed to buy at a bitcoin trading price below the current market bitcoin trading price. Point B is the point at which it was set.
Limit buy order entry placed to buy below the current market bitcoin trading price
The bitcoin trading price then retraced and went down to hit the buy entry limit, & afterwards bitcoin trading price continued to move upward in direction of the original Bitcoin upward cryptocurrency trend. When limit buy order was hit it changed in to a buy.
Bitcoin Price hits buy limit, order now changes to a buy
Sell Entry Limit Order
In the cryptocurrency trading example illustrated below a the sell entry limit was placed to sell at a price above the current market price. This is the level for the bitcoin trading price retracement.
Entry limit sell order placed to sell above the current market bitcoin trading price
The bitcoin trading price then rallied, went up to hit the sell entry limit, & afterwards bitcoin trading price continued to move downward in direction of the original Cryptocurrency downward trend.
Bitcoin Price hits sell limit, order now changes to a sell
When quote got to the set level the trading order changed in to a sell, this is therefore a nice technique to buy or sell at a better price after a price retracement.
Setting Buy & Sell Limit Orders on MT4 Platform
To set up these cryptocurrency orders in MetaTrader 4 platform, Right click on Bitcoin chart>>> Choose 'Trading'>>> Then Choose 'New'>>> Then on the popup window panel that pops up (illustrated below), under the label 'Type' choose the option of 'pending' instead of 'market execution'>>> Under the pending cryptocurrency trading order options select the pending cryptocurrency order type: for This trade choose 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 Crypto 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.
Fibonacci Retracement Tutorial - Fibonacci Retracement Guide
Tip: in Bitcoin 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 BTCUSD Trading Fib Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.
Fibonacci Expansion Tool Tutorial - Fibonacci Expansion Tool Guide
