Potential gain to the target ÷ potential loss to the stop. Below 2:1, you must be right most of the time just to break even.
How to read it
At 2:1 you break even winning 34% of trades; at 1:1 you must win more than half. Set target and stop BEFORE entering.
Related terms
Definitions describe how Easy Sahm computes and reads each figure. Analysis, not financial advice.