Now that we understand the Buy Limit Order let’s move on and explore the Sell Limit order.
At times traders will like to enter the market after it has rallied to a specific price level.

For example, some will like to enter the market after a 61.8% Fibonacci retracement to the upside or after the price reached a key resistance level or even when the market reached a trendline or rebounded off the upper Bollinger band to name few reasons.
As you see there are many reasons to justify the sell limit order.

Let’s take a look at an example.
Say that the current price for EURUSD is at 1.3550 after a bullish correction from 1.3500.
Many traders who entered the market on time feel very happy about it. However, those standing on the sidelines wished for a correction in price so they can enter as well and enjoy the bear market.

So, they place a Sell Limit order to enter the market at a higher price compared to the current price say at 1.3500.
The Sell limit order will be triggered only if the price rallies to the specified level of 1.3550 or higher.
MT4 and MT5 trading platforms provide both Buy Limit and Stop Limit orders.
Happy trading!