Hi Everybody,
Today I thought I would start with a training exercise on Risk/Reward, and making sure that you check the initial Risk/Reward at the first profit target.
If you look at the 60-min Chart of the GBPUSD you can see how we looked to have got a nice Wave 5 high that unfolded at both the minimum Wave 5 WPT and DP resistance. We also had nice oscillator divergence at the high at well. So it a first glance it did look like it was a good setup. But how good was it in term of Risk/Reward.
If you remember, we like to have trades that (on average) produce profits that are much larger than the losses. One was we do that is to try and only consider trades that start off with a possible 2:1 Risk Reward (or greater) at the first target. In this example the R/R at the first target was only 1.9:1. Some may say that is close enough, but at least with MTPredictor you have the tools to quickly and easily check this to then make an informed decision.
Thanks
Steve
Today I thought I would start with a training exercise on Risk/Reward, and making sure that you check the initial Risk/Reward at the first profit target.
If you look at the 60-min Chart of the GBPUSD you can see how we looked to have got a nice Wave 5 high that unfolded at both the minimum Wave 5 WPT and DP resistance. We also had nice oscillator divergence at the high at well. So it a first glance it did look like it was a good setup. But how good was it in term of Risk/Reward.
If you remember, we like to have trades that (on average) produce profits that are much larger than the losses. One was we do that is to try and only consider trades that start off with a possible 2:1 Risk Reward (or greater) at the first target. In this example the R/R at the first target was only 1.9:1. Some may say that is close enough, but at least with MTPredictor you have the tools to quickly and easily check this to then make an informed decision.
Thanks
Steve
Posts
