Beginner Question Regarding Pips calculation

Beginner Questions
1

The ATR for EUR/USD is 0.00531 i.e.: the pip value is 53.1 and the asking price for EUR/USD is 1.07273. So if I am considering 3xATR then my target and stop loss will be placed on 153.9 pips (3x53.1).
Now, my question is if I add 153 pips to asking price 1.07273 then the target will be 1.07426 and stop loss will be 1.07120 ?

Can someone please look at the calculation and confim?

Thanks,
Nav

2

It looks ok.

Of course you can set your profit target as high as you like but selecting a random price level far away doesn’t mean you will make more money.

3

Thanks tommor for looking at it. I didn’t want to set the profit to any random number that’s why I was trying to calculate it properly.
I hit the target 1.07426.

Thanks,
Nav.

4

The calculation is correct but you must have your own reasoning or logic from your own strategy which gives you this precise number of pips.

1 Like
5

Thanks Tommor,
Yes, I understand. I will keep posting about my trading journey further. Hope I will learn more from this.

1 Like
6

Yep your calculation is correct. If you’re considering 3 times the Average True Range for your target and stop loss placement and the ATR for EUR/USD is 0.00531 then your target and stop loss would indeed be 153.9 pips away from your entry point, and adding 153 pips to the asking price of 1.07273 results in a target price of approximately 1.07426 and subtracting 153 pips gives a stop loss price of around 1.07120

7

Thanks a lot @andrewlewis for explaining and I am following the same.

Nav.