Risk-Reward Ratio 

In technical analysis and trading, the risk-reward ratio is a key concept used to assess the potential profitability and risk of a trade or investment. It involves comparing the amount of potential profit to the amount of potential loss associated with a particular trade. The risk-reward ratio helps traders evaluate whether a trade is worth pursuing based on the potential return relative to the potential risk. The risk-reward ratio is typically expressed as a ratio or a fraction, with the potential risk (amount at risk) as the numerator and the potential reward (profit target) as the denominator. For example, a risk-reward ratio of 1:2 means that for every unit of risk, the trader aims to achieve two units of reward. 

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