Trade Stock Indices

Learn Stock Indices Trading

Entry Indices Trading Order in Indices and Limit Indices Trading Order in Indices

Limit order definition - Entry limit is an order to buy or sell a Indices at a certain stock indexes price which is a retracement level where stock indexes price is predicted to pullback to before resuming the original Indices trend. Indices traders use them to buy or sell at better market indices price. These types of orders are available in most online trading platforms, for our example we will use the MT4 stock indexes trading platform.


An entry of this type can be used to buy below the stock indexes trading market level (up indices trend market retracement) or sell above the stock indexes trading market level (down indices trend stock indices market retracement).


Buy limit - When buying, your entry buy limit is executed when the stock indexes trading market falls to your set indices price. (retraces down)


Sell limit - When selling, your entry sell limit is executed when the stock indexes trading market rises to your set indices price. (retraces up)


Entry orders are placed by indices traders when they expect stock indexes price to bounce back after reaching this level.


  • Entry Buy Limit Indices Trading Order
    buy at a level below the current market level.


  • Entry Sell Limit Indices Trading Order
    sell at a level above the current market level.


Buy Entry Limit Example

In the stock indexes trading example explained and illustrated below, the buy limit indices order was placed to buy at a indices price below the current market indices price. Point B is the point at which it was set.

Limit Buy Order Entry Placed to Buy Below the Current Market Indices Price

Limit buy order entry placed to buy below the current market indices price



The stock indexes price then retraced and went down to hit the buy entry limit, and afterwards stock indexes price continued to move upwards in the direction of the original Indices upward indices trend. When the limit buy order was hit it changed to a buy.

Indices Price Hits Buy Limit Indices Trading Order, Order Now Changes to a Buy

Indices Price hits buy limit, order now changes to a buy



Sell Entry Limit Indices Trading Order

In the stock indexes trading example explained and illustrated below a the sell entry limit was placed to sell at a indices price above the current market indices price. This is the level for the stock indexes price retracement.

entry limit sell order placed to sell above the current market indices price

Entry limit sell order placed to sell above the current market indices price


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The stock indexes price then rallied, went up to hit the sell entry limit, and afterwards stock indexes price continued to move downwards in the direction of the original Stock Indexes downward trend.

Indices Price Hits Sell Limit Indices Trading Order, Order Now Changes to a Sell

Indices Price hits sell limit, order now changes to a sell


When indices trading quote hit the set level the order changed to a sell, this is therefore a nice method to buy or sell at a better stock indexes price after a retracement.



Setting Buy and Sell Limit Indices Trading Orders on MT4

To set up these stock indices orders on the MT4 stock indexes trading platform, Right click on Indices chart>> Select "Trading">> Then Select "New">> Then on the popup window that appears (shown below), under the label "Type" select the option of "pending" instead of "market execution">> Under the pending stock indexes trading order options select the pending stock indices order type: For This trade select either "Buy Limit Indices Trading Order" or "Sell Limit Indices Trading Order" depending on whether you want to place a pending buy or sell.

Setting Buy and Sell Limit Indices Trading Orders on MT4

Setting Buy and Sell Limit Indices Trading Orders on 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 indices 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 - Indices Trading Fibonacci Retracement Tutorial


Tip: In Indices 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 Indices Trading Fibonacci Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.


Indices Trading Fibonacci Expansion Tool Tutorial - Indices Trading Fibonacci Expansion Tool Tutorial

 

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