When the red line is above the green line the indicator is suggesting that the spread is .
Before to enter short, we look at the indicator as well to receive a confirmation. The indicator is suggesting that the Gold market is 84% .
Because both indicators are , in our opinion an opportunity is coming for short positions and you may consider to sell the spread GCG2020-GCM2020
If you indicator would have suggested a market for the Gold , that would have meant that the spread GCG2020-GCM2020 would have been out of and therefore we would have avoided the trade.
We look to our RS indicator to identify levels.
According to our strategy, the can be used respectively to set our take profit and stop loss