– The asset tops out as buyers lose momentum and sellers take control.
Price breaks out of the accumulation zone. Higher highs and higher lows form. This is the ideal stage for long positions.
One of the most common mistakes new traders make is getting whipsawed by noise on a low timeframe. If you are a swing trader, your entry on a 5-minute chart means nothing if the weekly chart is showing a powerful downtrend. Shannon's philosophy is that the higher timeframe dictates the path of least resistance, while lower timeframes help you time the entry with precision. – The asset tops out as buyers lose
Technical analysis is a method of evaluating securities by analyzing statistical patterns and trends in their price movements. When it comes to applying technical analysis, one of the most effective approaches is using multiple timeframes. This approach allows traders and investors to gain a more comprehensive understanding of market trends and make more informed trading decisions.
Trading becomes highly profitable when multiple timeframes align. For example, if the daily chart is in a strong Stage 2 Markup, a trader should look for a localized breakout on the 15-minute chart. Buying a short-term breakout that aligns with a long-term uptrend creates a high-probability trade. 3. Anchored VWAP (Volume Weighted Average Price) This is the ideal stage for long positions
Brian Shannon is an American author, CMT (Chartered Market Technician), and the founder of Alphatrends, a technical analysis education platform established in 2005. With decades of professional trading experience, Shannon is renowned for his ability to articulate complex market mechanics in a simple, visual, and actionable manner. His teaching emphasizes: over lagging indicators. Risk management as the ultimate priority. Market structure understanding through multiple lenses.
Used to trigger the actual buy or sell order when a micro-breakout occurs. For Day Traders (Holding minutes to hours) Shannon's philosophy is that the higher timeframe dictates
The 14th edition of Brian Shannon's PDF guide on technical analysis using multiple timeframes has been updated to reflect the latest market trends and trading strategies. The guide includes:
Early buyers sell their shares to latecomers. Key indicator: High volatility with no real price progress. Phase 4: Markdown