Money-Based Chart Levels for Position Risk Assessment
Summary
The Money-Meter indicator translates price movement into estimated account-currency gains and losses for a chosen virtual position size. Starting from the current price or a user-entered zero price, it draws levels at set monetary intervals above and below that reference. Traders can use the display to see the potential impact of price moves without mentally converting points into money. The estimate excludes swaps and commissions.
Parameters control the lot size, monetary step, number of levels, and optional volume progressions. Equal, linear, Fibonacci-based, and geometric progressions can illustrate cumulative outcomes from averaging into a position or pyramiding. A lot divider can adjust calculations for brokers with unusual contract specifications. The indicator does not generate trading signals or assess existing positions; it is intended for quick risk review before entry. Its estimates depend on suitable settings and do not replace a full risk plan or account for the excluded costs.
Key ideas
- The indicator maps price levels to estimated gains and losses in the deposit currency for a selected lot size.
- A custom zero price changes the reference point used to calculate the levels.
- Progressions can estimate cumulative outcomes for repeated position additions or pyramiding.
- A lot divider can correct calculations for non-standard broker contract specifications.
- The tool gives no entry signals and excludes swaps and commissions from its estimates.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.