T2W Trading Community

QCOM displayed a similar pattern on the 9th of September 2005. The 15 minute chart revealed a +BE that bounced nicely off the moving average. This +BE not only set up a strong intraday move but preceded a multidollar run on the daily chart.

QCOM 09/09/05 15 min chart.

QCOM 09/09/05 (Circled) Daily chart

FNM recently showed the power of the Bearish Engulfing (-BE), again with multiple time frame analysis revealing the bigger picture. Following a strong up trend a –BE formed on the 60minute chart. When viewing the daily chart alone you would have been forgiven for thinking that day simply represented indecision in the form of a spinning top. However if you had drilled down to the 60 minute chart you seen that the market had already made a decision about where it wanted to go.

FNM 21/06/05 (Circled) 60 min chart.

The daily chart’s –BE actually occurred a day later on the 22nd followed by a prolonged down trend. The 60 minute chart indicated this weakness a day earlier and set up a 3 month run from around $60 to around $45 in October.

FNM 22/06/05 (Circled) daily chart.