Chapter 3: Mastering ATR and Risk/Reward Ratios

The Average True Range (ATR) and risk/reward ratios are foundational to managing trades effectively. ATR measures market volatility, helping you set stop-losses and take-profits within a 1 ATR zone from your baseline, optimizing entry and exit points. Risk/reward ratio analysis ensures each trade offers potential rewards at least twice the risk, a core No Nonsense principle. Learn to calculate these metrics in MT4, using historical data to understand currency pair volatility, especially among the 36 major pairs (including the Singapore Dollar) like EUR/USD and AUD/NZD, but noting EUR/CHF’s poor trending behavior.

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Coupon Code: MINUS15-SOFT4FX

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