I have a question about 2:1 risk reward ratio; when entering a stock on lets say a 1 minute bullflag or 5 minute bullflag, how can I make sure my risk/reward is 2:1? I can accurately gauge my risk because I know to set my stop at the low of the pullback, but how do I accurately gauge my reward? Do I have to guess how much the stock will break out? Are there any simple rules to determine reward potential?
Typically past resistance will guide the reward potential...whether it's intraday, daily, weekly, even yearly. Record high b/o's, impossible to know.
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