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Risk reward ratio is simply the amount you risk as compared to the
amount you expect to make.
If you have a stop in place which limits your risk to $1000 but when
your trade is successful you expect to make $3000 then your risk to reward ratio is 3:1 From the table above you can see that if you only selected trades where you thought you had a 3:1 risk reward ratio, then even if you were right only 50% of the time you would still make a profit.
After hit the 6 month low on Tuesday, EURUSD was sharply corrected to the upside yesterday. The pair topped at 1.4776, closed lower at 1.4715 and traded higher early today in Asian market at 1.4770 at the time wrote this comment. We have a bullish channel on hourly and 4h chart. CCI just cross 100 line up on 4h chart suggesting a another potential minor bullish correction. My model goes mixed with neutral bias in nearest term, but we still on bearish outlook in longer term. Immediate resistance is seen at 1.4835 followed by 1.4870. Initial support at 1.4690.
The GBPUSD upside correctional momentum was limited yesterday. The pair topped at 1.8488 before whipsawed to the downside and hit the bottomed at 1.8284 and closed at 1.8342. We are still in bearish scenario in longer term, but we might have another upside correction in nearest term. My model is mixed with neutral bias. Immediate resistance is seen at 1.8405 followed by 1.8455. Initial support at 1.8315. CCI just cross -100 line up on 4h chart suggesting another potential bullish correction.
