To Robert - R/R ratio and positive expectancy

Discussion in 'Risk Management' started by neo_hr, Oct 13, 2001.

  1. neo_hr

    neo_hr

    Hello all!

    Hope you made a nice buck this week and are willing for some more education of us newbies.

    This is primarilly adressed to R.Tharp as he and his respected father introduced this concept. Now I trade off S/R and place my stops accordingly . However I would like to have a few concise answers to this :

    WHAT IS EXACTLY RISK/REWARD AND MORE IMPORTANT HOE DO YOU DETERMINE IT ON A CHART?

    If you trade on the dailys, 1, 2 or 3 days most, what would you consider as a res? Previous days high, last weeks or the last "major" high? Same goes for support.

    And If you trade on the 5 min chart, how would you determine it then? Do you switch to higher timeframe, do you take 2 bar high/low as important? And when we introduce volume it becomes even more complicated... Any examples on the charts would be great on the topic. Now that I mentioned it I think it would be great to have some more charts on this board as they speak a 1000 word. More If you made a bad trade he he...

    Thank you all for answering and have a nice weekend

    Alex (typos like becoming my trademark?! :confused: )