Limit Indices Order Strategy

Limit order definition - Entry limit is an order to buy or sell a Indices instrument at a certain stock indices price which is a retracement level where stock indices price is predicted to pull-back to before resuming the original Indices trend. Traders use limit stock indices orders to buy or sell at better market price. Buy Limit Indices Order vs Sell Limit Stock Indices Order - These types of limit stock indices orders are available in most online trading softwares, for our example we will be using MT4 stock indices trading software.

Buy Limit Indices Order vs Sell Limit Stock Indices Order - An entry order of this type can be used to buy below the stock indices trading market level (upward trend retracement) or sell above stock indices market level (downwards trend retracement).

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

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

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

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

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

Buy Limit Indices Order Example

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

How to Use Limit Buy Orders - Limit Indices Order Buy Example - Limit Indices Order Trading Strategy

The stock indices price then retraced and went down to hit the buy limit order, and afterward the stock indices price continued to move upward in direction of the original Indices upward indices trend. When the limit buy order was hit it changed to a buy order - How to Use Limit Buy Orders.

Indices Price Hits Buy Limit Indices Order, Limit Buy Order Now Changes to a Buy - How to Use Buy Limit Indices Orders

Sell Limit Stock Indices Order Example

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

How to Use Limit Sell Orders - Limit Indices Order Trading Strategy

The stock indices price then rallied, went up to hit the sell limit order, and afterward the stock indices price continued to move downward in direction of the original indices downward trend.

How to Use Sell Limit Indices Orders

When the stock indices price hit the set sell limit order level the order changed to a sell, this is therefore a good method to sell at a better stock indices price after a retracement move.

Buy Limit Indices Order vs Sell Limit Stock Indices Order

How to Use Limit Indices Orders - to set up these indices limit stock indices orders in MetaTrader 4 platform, Right Click on Indices chart>>> Choose "Trading'>>> Then Select 'New">>> Then on the pop up panel that appears (illustrated below), under label 'Type' select option of 'pending' instead of 'market execution'>>> Under the pending stock indices order options select the pending stock indices order type: for This indices trading example choose either 'Buy Limit Indices Order" or "Sell Limit Indices Order" depending on whether you want to place a pending buy limit order or a pending sell limit order.

Setting Limit Indices Order Buy and Limit Indices Order Sell in MetaTrader 4

Sometimes, setting the point value to place your limit indices order can be calculated using a number of method, setting a limit stock indices order too far may mean your entry limit indices order not getting executed, the best indices trading tool and indices trading technique to use is Fibonacci retracement indicator and use the 38.2 % Fibonacci retracement levels. This fibonacci retracement level is used by many traders and entry limit indices orders tend to crowd at this Fibonacci retracement level, therefore the best indices strategy to place a indices trade would be to use the 38.2% Fibonacci retracement level. Fibonacci Retracement Tutorial for Setting Limit Indices Orders - Fibonacci Retracement Tutorial