Traders will often hear me refer to confluence between different time frames. (Pattern confluence can also be attributed on the same time frame but in different markets, which I call "intermarket confluence". In this "intramarket" example, illustrated by the charts above...the 3 min ER on the left, and the 15min ER on the right, my favorite confluence between time frames is shown...that between the 3min and 15min charts on the same instrument, in this case the ER. Observe the VT's occurring at the same moments in time on both the 15min and 3min charts. During this event, which occurred live in the big room, I was first mindful of the divergence between the CCI and price action on the 15min ER. So, my first instinct was to watch for a possible reversal signal (VT in this case) on the 15min ER. When that event looked plausible, I microscoped my view of the ER down to a 3min entry on the ER, which in this case was also a VT. This is a textbook example of a VT with Confluence between two timeframes, illustrating my most preferred timeframe tandem of 3min and 15min intervals.

It is easy to become enamoured with confluence plays as they present an opporunity for swing setups. Since swing setups present an opporunity for larger gains, they present an equal opportunity for large losses. Be diligent in using your stops when playing confluence setups.

Disclaimer: THERE IS EQUAL OR GREATER POTENTIAL FOR LOSS WHILE USING THIS STRATEGY. All information, graphs and depictions represented in this site are OPINIONS and HYPOTHETICAL PERFORMANCE RESULTS and should be recognized as such and are not solicitations or instructions to execute orders. You shall be responsible for any decision to purchase and/or sell any of the futures products depicted herein. Although, the information herein demonstrates the potential for profitable trades, the potential for loss is just as equal due to unforeseen circumstances and changing market conditions. You must also realize that the indicators and strategies may not work in the future and can be used to your detriment. The amount of profit demonstrated in my trades may be entirely different than yours even if the trades were entered and exited at the same time. Differences in commissions, fees, and internet connectivity can drastically alter your performance in comparison to what is depicted in the charts and could possibly result in a loss.