The signals generated by the RCS Spreadsheet (SS) are based on pure price action and not on any lagging indicator(s), and used as entry confirmation based on a trader`s own trend following/trading system. It helps to narrow down pairs to focus attention and where the momentum is. I am an intra day trader and would not take this signal for the following reasons:
- The average daily trading range for this pair has been reached and exceeded as highlighted on the chart window;
- There is resistance at 127.80 although resistance are meant to be broken but I am looking for high probability trades and will avoid a pair where resistance or support has not broken before the ADR is reached;
- This action at resistance area is coinciding with SMI at extreme OB on this time frame and it is already turning.
We will sometimes miss trades when price moves strongly during the Asian session and the alternative line of action is to look at other pair(s) and if not, we wait to trade another day. Not taking a trade is also a position. Patience and discipline is key to success in this business.
Price just broken the resistance and touched the RN at 128.00 but I am not looking at this pair, and would rather focus on pairs that have not reached their ADR.
Good trading folks
Cheers, and God bless
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