Plotting Entry, Stop, and R-Multiple Targets on a ProRealTime Chart
Summary
This document describes a chart indicator for visualizing a planned trade’s entry, stop, and reward targets at one, two, and three times the distance between entry and stop. Users supply entry and stop prices along with the number of bars over which to draw the horizontal levels and labels. The tool is intended to display risk/reward multiples without repurposing a Fibonacci drawing tool.
The provided ProRealTime example draws the levels on the latest bar update, with the stop and target lines distinguished by color. It is a visualization aid: the document does not define entry or exit signals, calculate position size, account for fees or slippage, or test profitability. Its target calculations assume the stop lies below the entry, so a short-trade setup or reversed price ordering would need adapted calculations.
Key ideas
- R is defined as the distance between the entry price and the stop price.
- The indicator plots entry, stop, and one-to-three-R target levels on the chart.
- Users set the prices and the horizontal drawing length through indicator parameters.
- The tool visualizes planned trade levels but does not evaluate strategy performance or position size.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.