Getting ready for a key scenario on MCD / Long and Short

Today, we will show a clear Daily Scenario and how we will trade the Long and Short Scenarios.

Daily Context:

a) The price is below a resistance zone. That level's critical because we saw 2 sell-off from there on September 2019 and March 2020

b)Also, we can see a Yellow trendline (Dynamic Support / Resistance zone) that is another key level.

c) The logic is: The price above the Resistance zone = Possible Bullish Scenario / The price below the Yellow trendline = Possible Bearish Scenario

Trading the Long Scenario:

-We can see a bullish Corrective Structure. Our entry will be above all the previous resistance zones. We will use Fibo Extensions to define the Targets—First Fibo extension for break-even, second Fibo Extension for Taking Profit.

-The Risk-Reward Ratio is above 1.5 / We expect a resolution of 1 month if the price executes our entry

-We will take a 1% risk of our capital on this setup

Trading the Short Scenario:

-We can see a clear bearish consolidation that has been there for 1 month

Our Entry level is below the structure (without considering the big shadows of the candlesticks). Our Break-Even is on the first Fibo Extension, and the Target is on the Daily Resistance zone

-The risk Rewards Ratio is above 1.5 / We expect a resolution of 15 days as maximum if the price executes our Entry

-We will take a 1% risk of our capital on this setup

Thanks for Reading!