VeChain ($VET ) - Short Position Analysis
Position Overview:
Short Liquidation: $23.926K
Price Level: $0.03231
Entry:
The entry point for this position is strategically set at $0.03231, where recent price action has indicated potential resistance.
Target:
The target for this trade is identified at $0.02900. This level is supported by previous price swings and technical analysis, suggesting a viable exit point to capitalize on the anticipated downward movement.
Stop Loss:
A stop loss is recommended at $0.03400 to minimize potential losses should the market move against the position. This level is above the established resistance and serves to protect the trader's capital.
Risk-Reward Ratio:
Entry: $0.03231
Target: $0.02900
Stop Loss: $0.03400
Calculating the risk-reward ratio:
Risk per trade: $0.03400 - $0.03231 = $0.00169
Reward per trade: $0.03231 - $0.02900 = $0.00331
The risk-reward ratio is approximately 1:2, providing a favorable setup for the trade.
Conclusion:
This short position on VeChain ($VET ) presents a structured approach with clearly defined entry, target, and stop-loss levels, bolstered by a favorable risk-reward ratio. Traders should monitor market conditions closely to stay informed of any potential changes that may impact this analysis.