SR Basics: Risk Reward Ratio in Forex
Technical Analysis indicators are the key to finding and executing high yield, low risk trades. Whether you’re using a daily, weekly or monthly chart or any other time frame, these indicators will show the likely reward-to-risk ratio of a trade.
In this lesson, we will show how choosing to take trades with an acceptable reward-to-risk ratio, i.e. a low risk/high reward trade, is conservative risk management, which is key to long-term trading success through long-term profitability.