The convergence of TOs of the lower degree indicate a weakening trend and possible reversal. This information can be gainfully utilized to tap the tops and bottoms and close the trading positions, adding substantially the profitability from the trade.
In the following hourly chart, the hourly TO (pink and green filled structure) is the dominant trend with its sub (minor) trends : pink and blue twin lines and green and orange twin lines.
The convergence and crossing of green and orange twin lines over pink and blue twin lines (marked in yellow circles), indicate the ideal switch over points for positional / swing trade which can give optimum profit for the trades. This technique can easily add almost 25%-40% to the trade profitability.
Farther the TOs are from each other and the dominant trend, the more trending the price move is likely to be.
Here, again the trigger ( yellow dotted line) gives an advance information about the direction of the sub-trends.
Noticeably, the TO representing the dominant trend, continues to lag and would not serve any useful purpose for taking any positional or swing trades.
