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 , 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 , which during an uptrend can often be an early indicator for a trend change. This is commonly known as an 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.