To analyze the Sonic/USDT short trade setup, let's break down the key components:


1. Entry Price (0.8105):


This is where the short trade is initiated. The price seems to be slightly above the current market price of 0.8066. The entry appears to be on a small rally, so you should watch for signs of resistance around this price.


2. Risk Management:



  • Leverage: 50x or 20x. Using higher leverage significantly increases potential returns but also amplifies risk. Given your entry at 0.8105, ensure that you’re comfortable with the rapid swings that come with higher leverage.


  • Margin: 3% margin with 2% risk is reasonable but be sure that your risk tolerance and account balance can absorb potential losses, especially with high leverage.


3. Stop Loss (SL) Above 0.8245:


The SL is set above 0.8245, which provides a buffer to avoid getting stopped out by small price movements. However, this could still lead to a significant loss if the price continues to move against you, so it’s critical to track price action around that level.


4. Take Profit (TPs):



  • 0.79 and 0.77: These levels are below the entry price, indicating you're targeting a short move. 0.79 is a reasonable first TP, and 0.77 seems like a more ambitious second TP.


  • The market structure will guide whether these levels are realistic. If the market is in a bearish trend or facing downward pressure, the likelihood of hitting these targets increases.


Additional Considerations:




  • Risk-Reward Ratio:
    With your SL above 0.8245 and your TPs at 0.79 and 0.77, the potential reward appears to be worth the risk. Ensure that the RR ratio aligns with your trading strategy.



  • Market Conditions:
    Watch for any major news or volatility that may affect Sonic/USDT. Price movements in high-leverage trades can be unpredictable, so stay updated on market trends or major announcements.


Conclusion:


This short setup has potential if market conditions align with the expected drop. Ensure to actively monitor price movements, especially near your stop loss level. Adjust your strategy accordingly if the market shows unexpected volatility.


Would you like to discuss more specific tools for managing such trades or have further analysis on the market?

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