This is a chart of spread between 19100CE and 19100PE. The white line is the spreadline. The red horizontal line is the zero line. I have also plotted 36EMA (Pink) and 200EMA (blue) on this line. Remember i use EMA's as trendline. The green vertical line is where the spreadline went above the previous high (marked by a white horizontal line). At this point the spread line was well and truly above both 36EMA and 200 EMA. This was around 1:54 on tuesday. The price was at Rs.19.80. It went on to make a high of Rs.368.2 the next day. It opened above red line yesterday. The 1st 1min. bar's low was Rs.40 and the bar closed at 68. So in this case waiting for the red line would have resulted in a delayed signal (And the SL would also have been bigger). In this chart also the spread line did not come back to 200EMA line though you had 5 or 6 touches to the 36EMA where one could have added to his positions or trailed SL's.