Two Stocks I'm Bearish OnTwo stocks that I would currently short are McDonalds and Netflix. McDonalds seems to be making the same type of mistakes that Big Boy or Frisch's Restaurants, Inc. were making that lost costumers. The marketing tactics they have are getting either too outdated, too risky, or too controversial. Outside of that, franchise fees are too expensive. You have the whole Steve Easterbrook controversy and a bunch of high support lines that look due for a pullback. Netflix is also under fire. The show Cuties have received a bunch of controversy for obvious reasons + you seen lots of hard dips recently on it. Netflix isn't like Tesla. The product Netflix has can be replaced by competition. That being said, I'm bearish. Please invest at your own risk and do your own due diligence. Proceed with caution.
MCDD trade ideas
V bottomPatterns are not valid unless break out/Long entry level is reached. I often enter on pull backs before this level if I feel the stock is "cheap" enough, but the actual pattern is not valid unless it reaches this level. It is nice to know there is a pattern to be traded and what could possibly happen if I enter before break out levels, but there is no way to predict what will happen. Market conditions play a huge factor. I think it is best for me to trust the stocks I buy and even then you never know. A long time ago my mentor told me to pick a group of 10 to 15 stocks, follow them, know them inside out, their earning dates etc... and to learn how they trade.
MCD has a lot going on in it's chart. It does look as if it will pull back a bit more
MCD was in a rising wedge and hopefully completed it's descent from the wedge pattern
The top trend line of the ascending triangle can provide support at 202-203ish.
NV is high and short interest is low.
A lot going on in our world so trade safely
Not a recommendation
MCD 1D BEAR FLAG SHORT TRADEBear Flags are Ranges that are repeatable trading chart patterns.
Bear Flag chart patterns will have a directional bias depending on the previous incoming trend (short trade).
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
MC-DONALDS KEY LEVEL| BREAKOUT| TRADING PLAN|
X MCD is trading in an upward channel
X Smaller channel is guiding the price now
X Faces key level resistance
X Wait for breakout>
X IF breakout higher>> long till red resistance
X IF breakout of the small upward channel downwards>> short till green support
X General trend still bullish till the big channel gets broken
LIKE + SUBSCRIBE= LUCK IN YOUR TRADES!
MCD good setup and good chanceHey everyone,
MCD tested the triangle after it's breakthrough and will now go to the 161 retracement as the swing before in my oppinion. This time there is nothing more to say but good luck and much fun!
Entrance: as soon as the opening confirmes the upper side of the triangle
Stop: 201,50$
Goal: 217,40$
Much fun with that trade!
Leave a follow please, my goal is 200 :)