💱 Forex & CFD Trading
Realistic Forex Profit Targets: ATR, Structure & R-Multiples
Stop guessing exits. Use ATR, support/resistance, and R-multiples to set achievable FX profit targets.
Key Takeaways
- •Combine structure, ATR, and R-multiples for realistic targets
- •Higher timeframes produce fewer, larger moves
- •Target the nearest confluence for highest probability
Three Evidence-Based Methods
Structure Targets
Aim for prior swing high/low or supply/demand zones.
ATR-Based
Target = k × ATR (e.g., 1.5×ATR(14)) to reflect typical range.
R-Multiples
If stop = 20 pips, 1.5R = 30 pips target.
Combine for Probability
Target the nearest confluence (e.g., 1.5×ATR aligns with prior swing). Trail partials if momentum continues.
Timeframe Matters
Higher timeframes produce fewer, larger moves. Match targets to volatility and session (London/NY overlap moves most majors).
Target Setting Examples
| Method | Example | Best For |
|---|---|---|
| Structure | Previous resistance at 1.1080 | Range-bound markets |
| ATR-Based | 2×ATR(14) = 60 pips | Trending markets |
| R-Multiple | 2R target (40 pips if stop is 20) | Consistent risk management |
Pro Tips & Common Mistakes
Pro Tips
- • Log actual vs planned R to refine realism
- • Consider partial exits at multiple levels
- • Adjust for market session volatility
Common Mistakes
- • Fixed 50-pip targets regardless of volatility
- • Ignoring news impact on targets
- • Not adjusting for different pairs
Frequently Asked Questions
Is 1:1 R:R okay?
It can be, if your win rate supports it.
Should I always trail stops?
Not always—test fixed targets vs trailing.
Best indicator?
ATR plus price structure is a strong baseline.