See charts below with an On Balance Volume indicator and the Money Flow Indicator using a 13 period

XAO 8th March 2024

Price and OBV look good, the only concern is that bearish divergence on the 13 period MFI. As I said last week strong bull markets are a mixture of extreme optimism, FOMO and fear. Pullbacks can be sharp but they are often quick, then the market takes off again. Everyone (well not all but many) are trying to pick the top. That's bloody impossible. 

The best thing is to manage risk by either taking some profit off the table but leaving a bit on to run. You can tighten stops too, if you are really getting nervous. The best thing of course (here we go again Pete you think) is to have a system and stick to it.

Until next week, I hope you enjoyed the news letter about divergences, here it is

https://www.easysharetradingsystems.com.au/products-and-services/archive

 Peter