CryptOReilly

ASX set for Trend Reversal. Bearish Divergence Weekly

ASX:ASX   ASX LIMITED
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.

Comments

But if you are in a trend... RSI isn't your friend.
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@geojoe, correct. A lesson learn in my trading journey. Now know to never disrespect the trend.
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geojoe CryptOReilly
@CryptOReilly, That gap is filled. I'd sell that IMHO



Thx 4 the tip off..)
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