Eda Kaya

Writer:

Eda Kaya
Arjun  Mandal

Reviewer:

Arjun Mandal
Modified:
542

Risk Reward Indicator for MetaTrader 4 Download - Free – [TradingFinder]

TradingView

MetaTrader4

MetaTrader5
$4FreeFor a limited time
Risk Reward Indicator for MetaTrader 4 Download - Free – [TradingFinder]
Risk Reward Indicator for MetaTrader 4 Download - Free – [TradingFinder] 0
Risk Reward Indicator for MetaTrader 4 Download - Free – [TradingFinder] 1
Risk Reward Indicator for MetaTrader 4 Download - Free – [TradingFinder] 2
Risk Reward Indicator for MetaTrader 4 Download - Free – [TradingFinder] 3
40
542
0
Modified:

The Risk Reward Indicator is one of the MetaTrader 4 indicators that calculates the risk (Risk) and reward (Reward) levels of trades. The calculations are based on the Stop Loss, Entry Price, and Take Profit levels.

The RR Indicator computes the Risk to Reward Ratio (RRR) and displays it in the top-left corner of the chart. Additionally, it marks the Stop Loss, Entry Price, and Take Profit levels using three horizontal lines on the main chart:

  • Green Line: Represents the Take Profit level
  • Red Line: Represents the Stop Loss level
  • Blue Line: Indicates the Entry Price

Risk Reward Indicator Specifications

The table below summarizes the key features of the Risk Reward Indicator.

Indicator Categories:
Money Management MT4 Indicators
Trading Assist MT4 Indicators
Risk Management MT4 Indicators
Platforms:
MetaTrader 4 Indicators
Trading Skills:
Elementary
Timeframe:
Multi-Timeframe MT4 Indicators
Trading Style:
Day Trading MT4 Indicators
Trading Instruments:
Stock Market MT4 Indicators
Cryptocurrency MT4 Indicators
Forex MT4 Indicators

Indicator Overview

The Risk Reward Ratio (RRR) Indicator helps traders compare the potential profit of a trade with its potential risk.

  • In a Long (Buy) strategy, the Risk is the difference between the Entry Price and the Stop Loss, while the Reward is the distance between the Entry Price and the Take Profit
  • For example, if the Risk is 5 units and the Reward is 10 units, the RRR is 1:2, meaning you earn 2 units for every 1 unit of risk

Bullish Market Scenario

In the GBP/NZD currency pair chart, suppose a trader enters a Buy position at 2.17851. The Stop Loss is set at 2.17527, and the Take Profit is set at 2.18527.

In this case, the indicator calculates the Risk to Reward Ratio (RRR) as 1:2.09 and displays it in the top-left corner of the chart.

Risk Reward Indicator in an Uptrend
Risk Reward Indicator Performance in Bullish Market Conditions

Bearish Market Scenario

In the GBP/USD currency pair on a 5-minute timeframe, a trader enters a Sell position at 1.22029. Following risk management principles, the Stop Loss is set at 1.22096, and the Take Profit is placed at 1.21664.

With these settings, the RRR is 1:2.45, indicating that the potential profit is more than double the risk.

Risk Reward Indicator in a Downtrend
Analyzing the Risk Reward Indicator in a Bearish Market on MetaTrader 4

Risk Reward Indicator Settings

The following image shows the Settings Panel of the Risk Reward Indicator in MT4:

Risk Reward Indicator Settings
Risk Reward Indicator Settings in MetaTrader 4
  • Entry Line move with price: Adjusts the Entry Line according to price movements
  • Display corner: Selects where the RRR is displayed on the chart
  • Font size: Controls the font size of the displayed text
  • Label color: Sets the label color
  • SL color: Selects the color for the Stop Loss
  • TP color: Selects the color for the Take Profit
  • EP color: Selects the color for the Entry Price
  • Line width: Adjusts the thickness of the lines
  • Line style: Customizes the line style
  • Line label font size: Sets the font size for the line labels

Conclusion

The Risk Reward Indicator accurately evaluates the Risk-Reward Ratio (RRR) of each trade.

Thisrisk control MetaTrader 4 indicator calculates the risk as the difference between the entry point and the stop loss, and the reward as the difference between the entry point and the take profit.

score of blog
5 From 5.0
(3)
Rate this post
FAQs

What is the Risk Reward Indicator, and how does it work?

The Risk Reward Indicator calculates the Risk to Reward Ratio (RRR) for trades and displays it visually on the chart, making it easier to manage trading decisions.

How is the Risk to Reward Ratio calculated?

The RRR is determined by dividing the potential profit (the difference between the Entry Price and Take Profit) by the potential loss (the difference between the Entry Price and Stop Loss).

0Comment