Limit Entry Technique (Long-Term)
Also: buy limit entry, sell limit entry, limit order entry
An order entry method for long-term traders in which a buy limit is placed at the closing price of a confirmed bearish (down) daily candle when the higher-timeframe bias (monthly/weekly) is bullish, or a sell limit is placed at the closing price of a confirmed bullish (up) daily candle when the higher-timeframe bias is bearish. The close of the counter-directional daily candle represents a deeply undervalued (for buys) or overvalued (for sells) price relative to where the market is heading. The trade fills on the next candle if price revisits that closing price. This technique provides a deeper, more favorable entry than the stop-entry technique but risks missing the fill entirely if price does not retrace to the close level.
Identification5
- Monthly and/or weekly chart must show a PD array drawing price in the bias direction (premium above for buys, discount below for sells).
- Daily candle must be closed and confirmed (not forming or trading).
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- The next day must trade below the bearish candle's close (for buys) or above the bullish candle's close (for sells) to generate a fill.
Entry3
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- Entry represents buying at a "deeply undervalued" or selling at an "overvalued" condition without indicators.
Stop2
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- Tightened to lowest low of last 20 trading days once trade has moved 75% of the expected range.
Target2
- Monthly or weekly premium PD array (for longs); discount PD array (for shorts).
- ICT documents individual potential moves of 360 to 1800+ pips on daily timeframe trades using this technique on dollar-yen.
Invalidation3
- Price never revisits the closing price of the entry candle; order expires unfilled.
- Higher-timeframe PD array has been reached or violated, eliminating the draw.
- Market structure shifts against the intended bias prior to fill.
Inferred Conditions (Unvalidated)
- Because the limit entry is at the close (deeper inside the day's candle body), not the open, it provides a tighter-to-low entry for longs and tighter-to-high entry for shorts compared to stop entries.
- Should be blended with daily PD array context (bearish order block, void, old high/low) to avoid indiscriminate entry on any counter-directional candle.
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ICT Quotes
"The buy limit is going to be placed at the bearish candles close as the daily candle. What we're actually doing is we're buying at a deeply undervalued price. It's already going to be oversold without requiring any indicators."
"By selling short and limit above that candles close, what you're doing is essentially getting that last little piece of market movement above getting that last little surge. And many times when we look at day trades, you're gonna see the Judas swing."
Timeframes
Version History1 version
55-ICT Mentorship Core Content - Month 5 - Limit Order Entry Techniques For Long Term Traders.srt
"Buying with a limit order. And much like we used for the buy stops, the monthly and or weekly should suggest institutional order flow, we'll be seeking a pdra above daily market price. The daily shoul…"
Initial definition in January 2017 content (Month 5).
Notes
Compared to stop-entry-technique: limit entries risk missing the fill but offer a tighter (lower risk) entry point when filled. ICT recommends stop entries for those who need guaranteed participation and limit entries for those who can accept the miss-risk. Both require the same higher-timeframe PD array context.
Asymmetry Notes
Symmetrical — the technique is identical in structure for both long and short entries, reversed in direction.