|luvene ||Mar 7, 2018 3:19am | Post# 24 |
Watch the image. I use Renko5 Bars. I use EMA50 (yellow) and EMA200 (aqua). Watch the purple vertical line. Time of crossing. Wait for the pull back and mark that lowest level. I did with the red line. Calculate the distance between the highest price level after the crossing and the red line. Set you Profit level just as far as you did with the Stoploss level, which is 47 pips. . Risk/Reward is 1:1. Of course you can set your own R/R levels, like 1:1.5 or whatever you like. This is an example (!)
and you can use a normal timeframe too. However, with Renko's, it is much easier to spot support and resistance levels and they are time independent.
You have to set a BUY STOP order in this example at the blue marked zone. And of course it is much easier to set at that time a bracket order with 47 pips Profit and 47 pips Stoploss. The red horizontal line is your stoploss level, the green horizontal your Take Profit level.