Hi all,
as you can see on the weekly time frame (also monthly) we are witnessing positive price action for the ASX. Although positive price action is generally celebrated, it needs to be backed up with positive movements in relative strength, which in this case is not happening.
As you will see on the chart published, despite the positive price action we experienced a lower high on the RSI, which during an uptrend can often be an early indicator for a trend change. This is commonly known as an RSI Bearish Divergence.
Due to this, I am opening a long term short position in which I expect significant downside movement, and since being so close to the recent weekly high, I only have to risk a minimal % of my position.
Anyone who follows me will know that these are my ideal trading set ups and I will more often then not open positions when these set ups occur.
as you can see on the weekly time frame (also monthly) we are witnessing positive price action for the ASX. Although positive price action is generally celebrated, it needs to be backed up with positive movements in relative strength, which in this case is not happening.
As you will see on the chart published, despite the positive price action we experienced a lower high on the RSI, which during an uptrend can often be an early indicator for a trend change. This is commonly known as an RSI Bearish Divergence.
Due to this, I am opening a long term short position in which I expect significant downside movement, and since being so close to the recent weekly high, I only have to risk a minimal % of my position.
Anyone who follows me will know that these are my ideal trading set ups and I will more often then not open positions when these set ups occur.