THe green area is the profit zone. With Targets we are aiming for,
I look at as simply if I risk $1 I am looking to get $4.86 back.
So according to your position size you would scale up or down.
Example1 if I risk $100 I expect to make $486
Example2 if I risk $1,000 I expect to make $4,860
Example3 if I risk $50 I expect to make $243
Not sure if that's any clearer for you?
Step 1. There are 2 colors - green and pink
Step 2. Let's do the pink part - draw a horizontal line from top of the pink box and another horizontal line from the bottom of the pink box. This price range is always the RISK part (that is to say the 1 part in our example 4.86:1)
Step 3: Let's do the green part - - draw a horizontal line from the top of green box and another horizontal line from the bottom of the green box. This price range is always the REWARD part (that is to say the 4.86 part in our example 4.86:1)
Step 4: The same process is for Shorts but for Shorts, the pink box shows on the top and the green box is below it
Finally, bear in mind they call it Risk Reward but its expressed by numbers as Reward to Risk. This means 4.86 is the Reward and 1 is the Risk.