Defining Trade Setups (Risk/Reward)
Defining the Setup: Why Risk/Reward is Everything on $AVAX .
The trade shown in this visualization has one of the best R:R profiles I have seen all week. We have a clear invalidation point just below a major support level, and a target at a deep liquidity pocket.
My plan for $AVAX :
Entry: $XX.XX (the support retest)
Stop-Loss: $XX.XX (the red box, just below the swing low)
Take-Profit: $XX.XX (the orange box, recent high)
This gives me a 3:1 Risk/Reward ratio. If I'm wrong, the loss is defined. If I'm right, the gain is significant. I never take a trade without visualizing this structure.
#Avalanche #AVAX #PositionSizing #TradingPlan

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