Risk/Reward Levels Indicator: Formula, Settings and How to Read It
Risk/Reward Levels draws an R grid for a hypothetical trade opened at the close of the last loaded bar, with R sized from the average true range. Four levels are plotted: 1R, 2R and 3R above the close, and −1R below it.
Senzoukria · Indicators · Updated September 2026
Risk/Reward Levels ships with the Senzoukria desktop app, in the Profiles & levels group of the indicator catalogue. It is drawn on the price chart.
What Risk/Reward Levels measures
R is the average true range over the chosen period multiplied by the chosen factor, 14 and 1.5 by default, so the grid is scaled to the distance the instrument actually covers rather than to a fixed number of ticks. The levels are anchored to the last bar and extended to the right edge, because they describe what comes next rather than a reading of past bars. Nothing is drawn when no bar is loaded, while the ATR is still warming up, or when R comes out at zero or below on a perfectly flat market, since four lines collapsed onto the close would look like a grid without being one. No order is ever sent from these levels, neither the −1R nor the targets.
The formula, as implemented
This is not a description of how the indicator is usually defined elsewhere — it is what the shipped code computes, documented next to the implementation:
Risk/Reward Levels — la grille R d'un trade THÉORIQUE ouvert au close de la DERNIÈRE barre chargée, avec R = mult × ATR_N (défauts N=14, mult=1.5) et quatre niveaux : close+R « 1R », close+2R « 2R », close+3R « 3R », close−R « -1R » (le risque, sous le prix : le seul niveau que le marché atteint sans qu'on ait rien à faire). POURQUOI un R en ATR : « 2R » n'a de sens que si R est une distance que le marché parcourt vraiment ; 1,5 ATR est le compromis habituel entre un stop si serré qu'il n'est qu'un aller-retour de spread et un stop si large que 3R devient inatteignable dans la séance. Niveaux ancrés à la dernière barre et projetés au bord droit (to: null) : ce sont des cibles pour la SUITE, pas une lecture de l'historique. Pas de barre, warm-up ATR, ou R ≤ 0 (marché parfaitement plat) → AUCUN niveau : quatre traits confondus sur le close ne seraient pas une grille de risque, ce serait un mensonge graphique. RAPPEL : aucun ordre n'est envoyé — ni le stop −1R, ni les cibles.
How to read it
- The −1R level is the only one the market can reach without any action from you, which makes it the one to read first.
- Compare the distance to 3R with the session's remaining time and its usual range: if 3R sits beyond what the instrument normally covers in a day, the risk unit is too large for that horizon.
- Changing the multiplier rescales all four levels at once, so the grid answers how far 2R is rather than where a stop belongs.
- The grid recentres on each new bar as it prints; it is a distance scale, not a record of a position you took.
- The levels know nothing about support, resistance or volume at price, so pair them with structure you identified elsewhere on the chart.
Parameters and defaults
ATR period defaults to 14 and accepts 1 to 200: a short period makes R follow recent volatility closely and the grid rescale often, a long one keeps it stable across quiet and busy stretches. The multiplier defaults to 1.5 and accepts 0.1 to 10 in steps of 0.1; 1.5 is the usual compromise between a risk unit so tight it amounts to a spread round trip and one so wide that 3R is out of reach within the session. Both parameters move every level at once. The colour defaults to #2962ff.
| Parameter | Type | Default | Range |
|---|---|---|---|
| ATR period | number | 14 | 1 – 200 |
| R = ATR × | number | 1.5 | 0.1 – 10 |
What it does not show
The grid is arithmetic applied to the last close and contains no market structure, so a target can land in the middle of a heavily traded area or just past an obvious level without the indicator knowing. It is anchored to that close rather than to any entry price you actually got. The average true range includes the gaps between bars, which inflates R after a jump. It is not a position-sizing tool either: it says nothing about contract count, account size or margin, and it never sends an order, since automated execution in the platform requires a deliberate arming step by the user.
Using it in Senzoukria
Add it from the Indicators panel of any footprint chart or candle chart. It runs on futures data from Rithmic or Databento and on crypto pairs from Binance and Bybit, on the same engine — the calculation does not change with the venue, only the data feeding it does. Market data subscriptions are billed by the provider, separately from the app.
Related indicators
- Rolling VPOC — Profiles & levels
- Session POC (developing) — Profiles & levels
- Session VAH/VAL (developing) — Profiles & levels
- Initial Balance — Profiles & levels
- Session Open — Profiles & levels
- Prior Session H/L/C — Profiles & levels
See the full indicator library, or start with the order flow guide if you are new to reading aggression, delta and absorption.
Frequently asked questions
- How is R calculated in the risk/reward levels?
- R is the average true range over the configured period multiplied by the configured factor, 14 and 1.5 by default. The four levels are then the last bar's close plus R, plus two R and plus three R, and minus R below it. Changing either parameter rescales all four at once.
- Does this indicator place stop-loss or take-profit orders?
- No. The levels are drawn on the chart and nothing is routed to a broker, the −1R level included. Placing an order is a separate and explicit action in the platform, and any automated execution has to be armed by the user first.
- Why are no risk/reward levels appearing on my chart?
- Three situations produce none: no bar is loaded, the average true range is still inside its warm-up period, or R comes out at zero or below on a completely flat market. In each case the four lines would sit on or around the close and would not represent a risk grid, so nothing is drawn.