Abdulllah1992
High-Frequency Trader
3 Years
توكل علي الله
114 Following
831 Followers
724 Liked
224 Shared
See original
📌 MEMEFI/USDT Analysis
Long / Short 👀
📈 🟢 Buy Trade (Long):
🔹 🚀 Entry Price: 0.004500 USDT
🔹 🛑 Stop Loss: 0.004300 USDT
🔹 🎯 Targets:
• 🥇 First Target: 0.004880 USDT
• 🥈 Second Target: 0.005200 USDT
• 🥉 Third Target: 0.005500 USDT
🔹 📊 Trade Analysis:
• The price is trying to hold above EMA 7 and EMA 25, which supports the possibility of an upward movement.
• RSI is stable at around 50, and if it breaks 55, it may support a price surge.
• MACD is showing the beginning of a positive crossover, which may enhance the upward movement.
• ✅ Entry Confirmation: Upon breaking 0.004500 USDT with a 15-minute bullish candle and a clear increase in trading volume.
⸻
📉 🔴 Sell Trade (Short):
🔹 📉 Entry Price: 0.004280 USDT
🔹 🛑 Stop Loss: 0.004450 USDT
🔹 🎯 Targets:
• 🥇 First Target: 0.003950 USDT
• 🥈 Second Target: 0.003700 USDT
• 🥉 Third Target: 0.003500 USDT
🔹 📊 Trade Analysis:
• The price is trading below resistance levels of EMA 7 and EMA 25, indicating a potential continuation of the downward trend.
• RSI is at around 46, and if it breaks 40, it may open the way for a wider decline.
• MACD is giving a slight negative signal, and the decline may be confirmed with an increase in selling momentum.
• ✅ Entry Confirmation: Upon breaking 0.004280 USDT with a 15-minute bearish candle and high selling volume.
• 🎚️ Leverage: 4x - 6x ⚡
✍️ Important Note: Trade entry is conditional on confirmation and not just on touching the price. • Commitment to moving the stop loss protects your profits regardless of market fluctuations. • Maintaining capital management is more important than any opportunity.
Long / Short 👀
📈 🟢 Buy Trade (Long):
🔹 🚀 Entry Price: 0.004500 USDT
🔹 🛑 Stop Loss: 0.004300 USDT
🔹 🎯 Targets:
• 🥇 First Target: 0.004880 USDT
• 🥈 Second Target: 0.005200 USDT
• 🥉 Third Target: 0.005500 USDT
🔹 📊 Trade Analysis:
• The price is trying to hold above EMA 7 and EMA 25, which supports the possibility of an upward movement.
• RSI is stable at around 50, and if it breaks 55, it may support a price surge.
• MACD is showing the beginning of a positive crossover, which may enhance the upward movement.
• ✅ Entry Confirmation: Upon breaking 0.004500 USDT with a 15-minute bullish candle and a clear increase in trading volume.
⸻
📉 🔴 Sell Trade (Short):
🔹 📉 Entry Price: 0.004280 USDT
🔹 🛑 Stop Loss: 0.004450 USDT
🔹 🎯 Targets:
• 🥇 First Target: 0.003950 USDT
• 🥈 Second Target: 0.003700 USDT
• 🥉 Third Target: 0.003500 USDT
🔹 📊 Trade Analysis:
• The price is trading below resistance levels of EMA 7 and EMA 25, indicating a potential continuation of the downward trend.
• RSI is at around 46, and if it breaks 40, it may open the way for a wider decline.
• MACD is giving a slight negative signal, and the decline may be confirmed with an increase in selling momentum.
• ✅ Entry Confirmation: Upon breaking 0.004280 USDT with a 15-minute bearish candle and high selling volume.
• 🎚️ Leverage: 4x - 6x ⚡
✍️ Important Note: Trade entry is conditional on confirmation and not just on touching the price. • Commitment to moving the stop loss protects your profits regardless of market fluctuations. • Maintaining capital management is more important than any opportunity.
See original
A small secret that makes a big difference: How to use the AVL indicator to uncover hidden market movements?
What is AVL?
AVL is short for Average Value Level.
In short, it is the average price around which trading occurs over a very short period, based on executed buy and sell orders.
Imagine you are looking at a crowded trading arena; AVL gives you a quick view showing you where the real battle between sellers and buyers is concentrated at this moment.
AVL is short for Average Value Level.
In short, it is the average price around which trading occurs over a very short period, based on executed buy and sell orders.
Imagine you are looking at a crowded trading arena; AVL gives you a quick view showing you where the real battle between sellers and buyers is concentrated at this moment.
See original
Bitcoin (BTC) Market Analysis
1. Liquidity Heatmap
The liquidity heatmap shows critical areas that may affect price movement:
• $95,000: Strong resistance, could be a major selling point.
• $94,500: Significant support, if the price remains above this point, it may trend upward.
• $94,000 and below: Strong support areas that may help prevent a deep decline.
2. Open Positions Distribution (Longs/Shorts)
• Longs (Buy): Approximately 48.3%
• Shorts (Sell): Approximately 51.7%
The data indicates a slight bias towards sell positions, suggesting that some traders expect a price drop.
3. Liquidations
• Total liquidation in the last 24 hours: Approximately $400.57 million.
• Largest liquidation: $8.2 million.
High liquidation indicates significant market volatility, suggesting sudden movements that may lead to opportunities or risks.
#BinanceHODLerSIGN
1. Liquidity Heatmap
The liquidity heatmap shows critical areas that may affect price movement:
• $95,000: Strong resistance, could be a major selling point.
• $94,500: Significant support, if the price remains above this point, it may trend upward.
• $94,000 and below: Strong support areas that may help prevent a deep decline.
2. Open Positions Distribution (Longs/Shorts)
• Longs (Buy): Approximately 48.3%
• Shorts (Sell): Approximately 51.7%
The data indicates a slight bias towards sell positions, suggesting that some traders expect a price drop.
3. Liquidations
• Total liquidation in the last 24 hours: Approximately $400.57 million.
• Largest liquidation: $8.2 million.
High liquidation indicates significant market volatility, suggesting sudden movements that may lead to opportunities or risks.
#BinanceHODLerSIGN
See original
"Ethereum (ETH) Market Analysis"
1. Liquidity Map (Heatmap)
The liquidity map shows us potential support and resistance areas in the market based on pending buy and sell orders. In the case of Ethereum (ETH), the key points focus on:
• 1900 dollars: A large cluster of orders, indicating strong resistance or potential support.
• 1850 dollars: A level of dense liquidity supporting price movement.
The liquidity map shows us potential support and resistance areas in the market based on pending buy and sell orders. In the case of Ethereum (ETH), the key points focus on:
• 1900 dollars: A large cluster of orders, indicating strong resistance or potential support.
• 1850 dollars: A level of dense liquidity supporting price movement.
See original
Did you know that ADX is your key to profit in volatile markets?
In the world of technical analysis, the ADX (Average Directional Index) is one of the essential tools for measuring trend strength regardless of its direction.
Correctly understanding this indicator can help traders distinguish between trending markets and ranging markets, enhancing the accuracy of investment decisions.
⸻
What is the ADX indicator?
The ADX indicator is a measure of trend strength, ranging from 0 to 100:
Correctly understanding this indicator can help traders distinguish between trending markets and ranging markets, enhancing the accuracy of investment decisions.
⸻
What is the ADX indicator?
The ADX indicator is a measure of trend strength, ranging from 0 to 100:
See original
SOL/USDT Analysis (⏳ 4 Hour Frame)
Trade (Buy - Sell)
📈 🔵 Buy Trade (Long):
🔹 🚀 Entry Price: 150.00 (upon clearly breaking the psychological resistance)
🔹 🛑 Stop Loss: 145.00
🔹 🎯 Targets:
• 🥇 First Target: 158.00
• 🥈 Second Target: 165.00
• 🥉 Third Target: 176.00
🔹 📊 Trade Analysis:
• The price is trading above EMA 7, 25, and 99, reinforcing the upward trend.
• RSI 🔵 is positive at around 63, and if it breaks 70, we might see a price surge.
• ✅ Entry Confirmation: Upon breaking 150.00 with a bullish 4-hour candle and a significant increase in trading volume.
• 🎚️ Leverage: 3x - 5x (because the frame is larger and the movement is wider).
⸻
📉 🔴 Sell Trade (Short):
🔹 📉 Entry Price: 143.00 (upon breaking the strong support)
🔹 🛑 Stop Loss: 147.00
🔹 🎯 Targets:
• 🥇 First Target: 135.00
• 🥈 Second Target: 130.00
• 🥉 Third Target: 120.00
🔹 📊 Trade Analysis:
• The price is facing pressure at the resistance of 147, with weak momentum (RSI below 60).
• RSI 🔴 is relatively negative, and if it breaks 50, it will reinforce the downtrend.
• ✅ Entry Confirmation: Upon breaking 143.00 with a bearish 4-hour candle and a noticeable increase in selling volumes.
• 🎚️ Leverage: 3x - 4x (conservative).
#solana
Trade (Buy - Sell)
📈 🔵 Buy Trade (Long):
🔹 🚀 Entry Price: 150.00 (upon clearly breaking the psychological resistance)
🔹 🛑 Stop Loss: 145.00
🔹 🎯 Targets:
• 🥇 First Target: 158.00
• 🥈 Second Target: 165.00
• 🥉 Third Target: 176.00
🔹 📊 Trade Analysis:
• The price is trading above EMA 7, 25, and 99, reinforcing the upward trend.
• RSI 🔵 is positive at around 63, and if it breaks 70, we might see a price surge.
• ✅ Entry Confirmation: Upon breaking 150.00 with a bullish 4-hour candle and a significant increase in trading volume.
• 🎚️ Leverage: 3x - 5x (because the frame is larger and the movement is wider).
⸻
📉 🔴 Sell Trade (Short):
🔹 📉 Entry Price: 143.00 (upon breaking the strong support)
🔹 🛑 Stop Loss: 147.00
🔹 🎯 Targets:
• 🥇 First Target: 135.00
• 🥈 Second Target: 130.00
• 🥉 Third Target: 120.00
🔹 📊 Trade Analysis:
• The price is facing pressure at the resistance of 147, with weak momentum (RSI below 60).
• RSI 🔴 is relatively negative, and if it breaks 50, it will reinforce the downtrend.
• ✅ Entry Confirmation: Upon breaking 143.00 with a bearish 4-hour candle and a noticeable increase in selling volumes.
• 🎚️ Leverage: 3x - 4x (conservative).
#solana
See original
Jerome Powell
1. Inflation and Tariffs:
“The proposed new tariffs could contribute to higher inflation rates, both temporarily and in the long term.”
2. Economic Assessment:
“The U.S. economy remains fundamentally strong, and the labor market is showing remarkable resilience.”
3. Monetary Policy and Decision-Making:
“We are in a position to be patient before making any decisions regarding interest rates, and we will continue to closely monitor economic data.”
4. Fed Trends:
“There are divergent views within the committee; some members are inclined to cut rates if conditions deteriorate, while others believe the current policy stance should be maintained to combat inflation.”
1. Inflation and Tariffs:
“The proposed new tariffs could contribute to higher inflation rates, both temporarily and in the long term.”
2. Economic Assessment:
“The U.S. economy remains fundamentally strong, and the labor market is showing remarkable resilience.”
3. Monetary Policy and Decision-Making:
“We are in a position to be patient before making any decisions regarding interest rates, and we will continue to closely monitor economic data.”
4. Fed Trends:
“There are divergent views within the committee; some members are inclined to cut rates if conditions deteriorate, while others believe the current policy stance should be maintained to combat inflation.”
See original
"POI Area: Where the Market Decides Its Fate!"
POI is an abbreviation for Point of Interest, which means 'Point of Interest' — it is a specific area on the chart where the trader expects a strong price interaction (such as a rebound, break, liquidity entry...).
⸻
First: What exactly is meant by POI?
This is an area on the chart determined by a previous abnormal price movement, such as:
• A huge candle with a long wick.
⸻
First: What exactly is meant by POI?
This is an area on the chart determined by a previous abnormal price movement, such as:
• A huge candle with a long wick.
See original
“Yesterday's candle creates today's gain – understand it before the market gets ahead of you!”
Pivot Levels means in Arabic: “مستويات المحور”, and it is a powerful technical analysis tool used by traders to identify expected support and resistance areas during the day or week.
⸻
First: Which candle do we rely on?
To calculate the Pivot, we need 3 numbers from a previous candle (usually the candle from the day before):
• Highest Price (High)
• Lowest Price (Low)
⸻
First: Which candle do we rely on?
To calculate the Pivot, we need 3 numbers from a previous candle (usually the candle from the day before):
• Highest Price (High)
• Lowest Price (Low)
See original
First: Liquidity Map (Heatmap - Heatmap)
• Strongest liquidity areas visible on the map:
• 1900: There are clear order clusters at this level, indicating potential support or resistance.
• 1850: Dense liquidity levels supporting price movement.
• 1800, 1750, 1700: Areas with dense pending orders, which may act as strong support in case of a correction.
⸻
Second: Open Positions Distribution (Longs/Shorts - Buy/Sell Trades)
Overall ratios across all platforms:
• Long (Buy): 48.3%
• Short (Sell): 51.7%
Notable ratios by platform:
• Bitget: Longs 49.5% | Shorts 50.5%
• MEXC: Longs 50.1% | Shorts 49.9%
• WhiteBIT: Longs 45.6% | Shorts 54.4%
⸻
Third: Liquidation Trades (ETH Rekt - Liquidation of Positions)
Last 24 hours:
• Total liquidation: $400.57 million
• Number of traders liquidated: 180,220 traders
• Largest individual liquidation: $8.2 million on Bitfinex platform
Liquidation details by time frame:
• 1 hour:
• Longs: $2.8M
• Shorts: $1.1M
• 4 hours:
• Longs: $50.6M
• Shorts: $6.8M
• 12 hours:
• Longs: $82.3M
• Shorts: $12.2M
• 24 hours:
• Longs: $125.7M
• Shorts: $21.5M
⸻
Notes:
• The market slightly favors sell trades (Shorts), as sell positions show relative dominance.
• Liquidation of buy trades (Longs) was significantly higher, which may indicate a bullish trap in the market.
• Liquidity concentration at certain levels gives clear opportunities for traders to accurately identify entry and exit points.
$ETH
• Strongest liquidity areas visible on the map:
• 1900: There are clear order clusters at this level, indicating potential support or resistance.
• 1850: Dense liquidity levels supporting price movement.
• 1800, 1750, 1700: Areas with dense pending orders, which may act as strong support in case of a correction.
⸻
Second: Open Positions Distribution (Longs/Shorts - Buy/Sell Trades)
Overall ratios across all platforms:
• Long (Buy): 48.3%
• Short (Sell): 51.7%
Notable ratios by platform:
• Bitget: Longs 49.5% | Shorts 50.5%
• MEXC: Longs 50.1% | Shorts 49.9%
• WhiteBIT: Longs 45.6% | Shorts 54.4%
⸻
Third: Liquidation Trades (ETH Rekt - Liquidation of Positions)
Last 24 hours:
• Total liquidation: $400.57 million
• Number of traders liquidated: 180,220 traders
• Largest individual liquidation: $8.2 million on Bitfinex platform
Liquidation details by time frame:
• 1 hour:
• Longs: $2.8M
• Shorts: $1.1M
• 4 hours:
• Longs: $50.6M
• Shorts: $6.8M
• 12 hours:
• Longs: $82.3M
• Shorts: $12.2M
• 24 hours:
• Longs: $125.7M
• Shorts: $21.5M
⸻
Notes:
• The market slightly favors sell trades (Shorts), as sell positions show relative dominance.
• Liquidation of buy trades (Longs) was significantly higher, which may indicate a bullish trap in the market.
• Liquidity concentration at certain levels gives clear opportunities for traders to accurately identify entry and exit points.
$ETH
See original
“Stay SAFU” – More than just a phrase!
In the crypto world, the phrase “Stay SAFU” has become like a gentle reminder to traders to be cautious. Its origin is from the word “Safe,” but in a playful form, and it spread after it was used by the Binance platform during a awareness campaign.
Today, the word has evolved and symbolizes the lifestyle of a smart trader: protect your assets, do not share your private keys, and always stay updated with the news. “Stay SAFU” means: be prepared, don’t trust too quickly, and remain cautious even during bull runs!
It’s a simple word, but it carries a complete philosophy in a merciless market!
#StaySAFU
In the crypto world, the phrase “Stay SAFU” has become like a gentle reminder to traders to be cautious. Its origin is from the word “Safe,” but in a playful form, and it spread after it was used by the Binance platform during a awareness campaign.
Today, the word has evolved and symbolizes the lifestyle of a smart trader: protect your assets, do not share your private keys, and always stay updated with the news. “Stay SAFU” means: be prepared, don’t trust too quickly, and remain cautious even during bull runs!
It’s a simple word, but it carries a complete philosophy in a merciless market!
#StaySAFU
See original
“U.S. Economic Indicators: Inflation Under Control and a Strong Labor Market” – March 2025
The U.S. economic data for March showed a slowdown in inflation and relative stability in the labor market. The Consumer Price Index (CPI) recorded an annual increase of 2.4%, with a slight monthly decrease of 0.1%, while core inflation (Core CPI) stood at 2.8% annually, the lowest level since 2021. The decline in energy prices by 2.4% contributed to easing inflationary pressures.
On the other hand, initial unemployment claims rose to 223,000, an increase of 4,000 claims, while continuing claims fell to 1.85 million. Despite this, the economy added 228,000 new jobs, although the unemployment rate rose slightly to 4.2%.
These figures suggest a delicate balance between slowing inflation and a relatively strong labor market, which may influence the Federal Reserve's direction in the coming period.
#CPI&JoblessClaimsWatch
The U.S. economic data for March showed a slowdown in inflation and relative stability in the labor market. The Consumer Price Index (CPI) recorded an annual increase of 2.4%, with a slight monthly decrease of 0.1%, while core inflation (Core CPI) stood at 2.8% annually, the lowest level since 2021. The decline in energy prices by 2.4% contributed to easing inflationary pressures.
On the other hand, initial unemployment claims rose to 223,000, an increase of 4,000 claims, while continuing claims fell to 1.85 million. Despite this, the economy added 228,000 new jobs, although the unemployment rate rose slightly to 4.2%.
These figures suggest a delicate balance between slowing inflation and a relatively strong labor market, which may influence the Federal Reserve's direction in the coming period.
#CPI&JoblessClaimsWatch
See original
Live Bitcoin Market Data: Liquidity and Liquidation Analysis
Bitcoin Market Report
First: Liquidity map (Heatmap)
• The strongest liquidity areas shown on the map:
• 82061: There are clear order clusters at this level, indicating potential support or resistance.
• 80015: Heavy liquidity levels support price action.
• 78057, 76011, 74053: These are all areas with heavy pending orders, which can act as support during any correction.
First: Liquidity map (Heatmap)
• The strongest liquidity areas shown on the map:
• 82061: There are clear order clusters at this level, indicating potential support or resistance.
• 80015: Heavy liquidity levels support price action.
• 78057, 76011, 74053: These are all areas with heavy pending orders, which can act as support during any correction.
See original
A New World of Tokens and Opportunities: Explore KernelDAO and WalletConnect on Binance
Binance has announced the launch of two new projects under its innovative programs: KernelDAO (KERNEL) through the Megadrop program, and WalletConnect (WCT) through the Launchpool program. Both projects offer a unique opportunity for users to earn tokens for free through simple methods like locking coins or completing Web3 tasks, with a quick listing for trading on the platform.
See original
"Tariff Pause": The Crypto Dance to the Beat of a Dramatic Halt
"Tariff Pause", a satirical play in the arena of cryptocurrencies: Trump hits the pause button on tariffs, and Bitcoin jumps up by 7.7% like a dancer awakening from a slumber, while XRP leaps 11% like a child playing with long-awaited candy. "Crypto Bros" gather their tears, donning their "To the Moon" robes again, deluded by the dissipating clouds. But, oh the irony! This halt is nothing but a false respite, and the market remains a prisoner of political whims. So enjoy the rhythm of the rise, but beware: in the world of crypto, the dance may be interrupted by a new tariff!
#TariffsPause
"Tariff Pause", a satirical play in the arena of cryptocurrencies: Trump hits the pause button on tariffs, and Bitcoin jumps up by 7.7% like a dancer awakening from a slumber, while XRP leaps 11% like a child playing with long-awaited candy. "Crypto Bros" gather their tears, donning their "To the Moon" robes again, deluded by the dissipating clouds. But, oh the irony! This halt is nothing but a false respite, and the market remains a prisoner of political whims. So enjoy the rhythm of the rise, but beware: in the world of crypto, the dance may be interrupted by a new tariff!
#TariffsPause
See original
Babylon Project – The Golden Bridge Between Bitcoin and Decentralized Finance
Binance has announced the listing of the digital currency for the Babylon project, known by the symbol BABY, as part of a rewards initiative for users called HODLer Airdrops, aimed at encouraging BNB holders to participate and support new projects.
⸻
Basic Information about BABY Token:
• Project Name: Babylon
• Token Symbol: BABY
• Initial amount offered: 10 billion BABY
⸻
Basic Information about BABY Token:
• Project Name: Babylon
• Token Symbol: BABY
• Initial amount offered: 10 billion BABY
See original
"CryptoTariffDrop", Economic Comedy
Trump drops tariffs like bombs, Bitcoin falls like someone who jumped without a parachute, and the "crypto bros" go from boasting to crying. Suddenly, the tariffs are suspended, and the market rises 7.7%, with XRP jumping 11% like a child getting candy. The irony? Inevitable. The lesson? Cryptocurrencies are not as decentralized as they claim, as one policy can shake them. Enjoy the crazy dance of prices, but don't rely on it for survival in a storm, or you might find yourself holding a leaky umbrella under a rain of tariffs.
#CryptoTariffDrop
Trump drops tariffs like bombs, Bitcoin falls like someone who jumped without a parachute, and the "crypto bros" go from boasting to crying. Suddenly, the tariffs are suspended, and the market rises 7.7%, with XRP jumping 11% like a child getting candy. The irony? Inevitable. The lesson? Cryptocurrencies are not as decentralized as they claim, as one policy can shake them. Enjoy the crazy dance of prices, but don't rely on it for survival in a storm, or you might find yourself holding a leaky umbrella under a rain of tariffs.
#CryptoTariffDrop
See original
“Ralph Elliott: The Creator of the Wave Theory That Changed Market Analysis and Was Known Only to a Few”
Elliott is “Ralph Nelson Elliott,” an American financial analyst in the 20th century, famous for his creation of the “Elliott Wave Theory,” a technical analysis tool used to predict financial market movements, including cryptocurrencies.
First: Types of Waves
The movement is divided into two main waves:
1. Impulse Waves:
It consists of 5 waves moving with the direction (either up or down).
First: Types of Waves
The movement is divided into two main waves:
1. Impulse Waves:
It consists of 5 waves moving with the direction (either up or down).
See original
$BTC
Bitcoin: The Digital Magnet
Bitcoin is not just a digital currency; it is a digital magnet that connects people and opportunities across the world. In our traditional world, money is tied to banks and governments, but Bitcoin has broken these constraints. It is an invisible currency that moves across the network without borders or intermediaries. Thanks to blockchain technology, every exchange becomes secure and transparent, giving individuals the power to control their money. Bitcoin represents financial freedom in the age of technology, where there is no need for a bank or an intermediary; it is a global financial system open to everyone. In the future, Bitcoin may become the new foundation for financial transactions and change the concept of money as we know it today.
Bitcoin: The Digital Magnet
Bitcoin is not just a digital currency; it is a digital magnet that connects people and opportunities across the world. In our traditional world, money is tied to banks and governments, but Bitcoin has broken these constraints. It is an invisible currency that moves across the network without borders or intermediaries. Thanks to blockchain technology, every exchange becomes secure and transparent, giving individuals the power to control their money. Bitcoin represents financial freedom in the age of technology, where there is no need for a bank or an intermediary; it is a global financial system open to everyone. In the future, Bitcoin may become the new foundation for financial transactions and change the concept of money as we know it today.
See original
#RiskRewardRatio
What is the Risk-Reward Ratio?
The Risk-Reward Ratio is a key tool used by traders to assess whether a trade is worth the risk. Simply put, it is a comparison between what you could lose versus what you could gain.
For example, if you opened a trade with a profit target of $300 and are willing to risk only $100, the risk-reward ratio would be 1:3. This means you are risking one dollar to gain three.
The higher this ratio is in favor of the reward, the more “reasonable” the trade becomes. Professional traders often look for trades with a ratio of 1:2 or higher, as they know that not every trade will be profitable, but by achieving higher returns than losses, they make a profit in the long run.
In summary:
Risk management starts with establishing a clear ratio before entering any trade. Without it, trading turns into gambling.
What is the Risk-Reward Ratio?
The Risk-Reward Ratio is a key tool used by traders to assess whether a trade is worth the risk. Simply put, it is a comparison between what you could lose versus what you could gain.
For example, if you opened a trade with a profit target of $300 and are willing to risk only $100, the risk-reward ratio would be 1:3. This means you are risking one dollar to gain three.
The higher this ratio is in favor of the reward, the more “reasonable” the trade becomes. Professional traders often look for trades with a ratio of 1:2 or higher, as they know that not every trade will be profitable, but by achieving higher returns than losses, they make a profit in the long run.
In summary:
Risk management starts with establishing a clear ratio before entering any trade. Without it, trading turns into gambling.
Login to explore more contents