Converg ing patterns on diff erent time frame s c an
hel p pinp oint trade opportunities.
This approach show s you how to set up these trades and take profits when opportunity arises. Figure 2 (above) shows an example using one-minute and fiveminute charts of the Standard & Poor’ s tracking stock (SPY). The five – minute chart on the right has formed a rising channel pattern, a nd the one – minute bars on the left traced out a head and- shoulders top patt ern (a reversal formation). Together, they offer a str ong combination for enter ing a trade.