How to Use the Long/Short Positioning Tool - Full Breakdown

Hello Traders. This is a continuation of how to use the long/short positioning tool from our previous post. In my previous post, I talked more specifically about how we can calculate the Risk Reward Ratio ( RRR ), but here, in a visualized format, I have broken it down as best as I can so that you as the trader can understand each and every part of the tool.

This tool is one of the most important tools to use as a trader, in my honest opinion, due to it being heavily focused on how to preserve your account taking into accountability of your overall funds. Your goal in trade is to make sure you preserve your capital, and not lose it. Often more than not, traders have no idea on how to exit a trade. No matter how bad (or good) of a trade setup you may have, having a solid risk reward ratio setup is incredibly important for making sure you are taking profits and losses at the correct places.

I have separated this article into three sections as shown in the diagram above.

1. Profit Zone
2. Stop Loss Zone
3. Trade Zone (Risk Reward)

Reference: www.tradingview.com/blog/en/esti...

TradingView offers plenty of great tools, but it's important to know how to use the tools. Many traders use the long/short positioning tool; however, often is misguided due to not understanding the full functionality.

For more on risk reward management posts, please check the posts below!

تعليق:

Part 1: A Guide to Risk Reward Ratio (RRR) - How To Calculate and Setup