The risk and reward calculator will help you to calculate the position's best targets and their respective reward-to-risk ratios based on the Fibonacci retracements from the local peak and bottom. It's a powerful tool to determine the potential risks before entering any positions.
Fibonacci retracements (0.382 and 0.618) are calculated to form the entry, target and stop-loss levels. It's better to enter positions only if the current price (C) is close to 0.382 Fibonacci level.
It's not recommended to enter a trade if your reward-to-risk ratio is less than 2.
* In a downtrend it is the Peak , in an uptrend it is the Bottom.
** In a downtrend it is the Bottom, in an Uptrend it is the Peak.
*** The current price of the underlying instrument.