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RE: Zcash (ZEC) Technical Analysis & Prediction - 6/27/2017
Hey spiz, thanks for the great post. It would be of great help if you coul explain what is implied here by risk/reward ratio and how you computed it in this analysis. Cheers
Yes of course! Risk/reward ratio is extremely important. This is the ratio of money you are willing to risk for the expected return. Investors consider a risk/reward ratio of 2.0 to be very good. As you can see from the chart, this ratio is given by the amount you would gain or lose using my buy order and stop loss. If you buy at the suggested price and it goes back to the previous high, you would make 2x what you would lose if the stop order is triggered. I hope that clears things up!
To get that exact return you mentioned you'd also in theory need a sell order at some level though right?
FYI if you open the image in a new tab you will be able to read all the numbers and words much more easily.