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