What is a good Risk-Reward Ratio?

A common benchmark is at least 2:1, meaning the potential reward should be twice the potential risk. However, the ideal ratio depends on your trading style and strategy.

How can I improve my Risk-Reward Ratio?

Consider tightening stop-loss levels, choosing better entry points, and focusing on trades with higher reward potential. Reducing risk while maintaining a strong potential reward is key to improving the ratio.

Why is the Risk-Reward Ratio important in trading?

It helps traders make informed decisions, avoid low-probability trades, and align their strategy with long-term financial goals. By focusing on a favorable Risk-Reward Ratio, traders can achieve more consistent and sustainable profitability.

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What is RISK-REWARD RATIO?

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RSI Divergence detects disparity between RSI movement and price trends for reversals.

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