Risk-Reward Ratio
Risk-Reward Ratio in Elliott Wave Theory: The ratio between the potential loss (distance to stop loss) and potential gain (distance to target). Elliott Wave setups at Wave 2 bottoms typically offer 3:1 or better risk-reward because the invalidation is close and the Wave 3 target is distant.
What Risk-Reward Ratio Means
The ratio between the potential loss (distance to stop loss) and potential gain (distance to target). Elliott Wave setups at Wave 2 bottoms typically offer 3:1 or better risk-reward because the invalidation is close and the Wave 3 target is distant.
Where You'll See It
Risk-Reward Ratio appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the trading family of Elliott Wave concepts and shows up most often when analysts are translating a wave count into an actual trade setup with entry, target, and invalidation.
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