Converging Trends - Converging trends can take 3 possible shapes:  A converging trend with a bias to increase, a converging trend with a bias to decrease, and an unbiased converging trend. 

1.  A converging trend with a bias to increase is seen when the trend lines, and therefore the trading channel, of a particular stock or Index has a flat upper trend line, and an increasing lower trend line.  This type of pattern usually suggests that the resistance at that upper trend line is strong, but it also tells us that there is a bias in the security to increase.  The pattern tells us to expect the volatility in the Index to slow as the trend converges, but it also tells us that is the resistance line breaks accelerated moves higher could come fast. See the example below.

2.  A converging trend with a bias to decrease is seen when the trend lines, and therefore the trading channel, of a particular stock or Index has a flat lower trend line, and a decreasing upper trend line.  This type of pattern usually suggests that the support at that lower trend line is strong, but it also tells us that there is a bias in the security to decline.  The pattern tells us to expect the volatility in the Index to slow as the trend converges, but it also tells us that is the support line breaks accelerated moves lower could come fast.  See the example below.

3.  An unbiased converging trend is seen when both the upper and lower trend lines of a trading channel converge together to meet in the middle of the channel.  In this case neither of the trend lines are flat.  The upper trend line is decreasing and the lower trend line is increasing.  This tells us that the volatility in the security is waning.  In addition it is telling us that the support and resistance lines in the stock are equally as strong.  This in turn tells us to be prepared for accelerated moves in either direction depending on a break of either trend line.  If the resistance line breaks accelerated moves higher are likely, but if the support line breaks accelerated moves lower are likely.  See the example below.