The chart shows sideways movement with increased volatility. Stage 4: Decline
Shannon emphasizes that allow traders to see the bigger picture, preventing them from falling into the trap of trading against the dominant trend. The Three-Timeframe Approach
If you want to stop overtrading and start aligning with the trend, follow this rule:
Brian Shannon’s approach centers on the idea that no single timeframe provides a complete picture of a stock's health. By "layering" charts—ranging from weekly to 5-minute intervals—traders can ensure they are buying into strength while managing risk on a granular level. by brian shannon technical analysis using multiple link
To practice you need specific software capabilities:
Shannon’s methodology enforces a crucial rule: The Four Stages of the Market Cycle
Brian Shannon's multi-timeframe approach is not about finding the ultimate indicator or a magical system. It is about understanding that the market is a complex, multi-layered organism and that by linking multiple perspectives, a trader can achieve clarity. By starting with the major trend, using price and volume as your guide, and relying on objective tools like Anchored VWAP for execution, you can finally stop fighting the market and start moving with it. The chart shows sideways movement with increased volatility
That "breakout" on the 15-minute? It wasn't a breakout. It was a into daily supply.
: Unlike many academic texts, Shannon writes from the perspective of a "real trader," skipping get-rich-quick fluff to deliver a practical framework for preserving capital. Risk Management focus
Used to identify the major trend and primary support/resistance levels. By starting with the major trend, using price
Brian Shannon is the author of "Technical Analysis Using Multiple Timeframes" and the creator of the AlphaTrends platform.
: Use higher timeframes (like the daily or weekly charts) to identify the primary trend and overall market structure.
| Step | Timeframe | Action | Indicator | | :--- | :--- | :--- | :--- | | | Daily | Determine bias (Bullish/Bearish) | 200 EMA, Anchored VWAP | | 2 | 60-min | Identify pullback zone | 20 EMA, prior high/low | | 3 | 5-min | Execute entry & manage risk | Volume profile, candlestick confirmation |
Switch to the 65-minute chart. Look for the short-term downtrend of the pullback to break or form a constructive base (a mini Stage 1 accumulation).
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