Technical Analysis Using Multiple Timeframes Brian Shannon Jun 2026
Brian Shannon, founder of AlphaTrends and a renowned technical analyst, solved this problem more than a decade ago. In his seminal 2008 book, Shannon laid out a practical, repeatable framework for reading price action across multiple horizons simultaneously. The book, updated and republished in 2023, has become a cornerstone text for traders who want to move beyond guesswork and into systematic, high-probability trading.
This timeframe reveals clear geometric patterns like flags, pennants, or rectangles forming against the primary trend. It dictates where a trade becomes valid. 3. The Lower Timeframe (The Trigger)
Shannon’s core philosophy is elegantly simple but profoundly effective: price action viewed across different magnification levels reveals the full story the market is trying to tell.
All three moving averages are aligned downward. Price is making lower highs and lower lows. Look for short trades or stay entirely in cash. Do not attempt to catch falling knives. technical analysis using multiple timeframes brian shannon
I can provide a concrete chart scenario tailored to your exact style.
(AVWAP), which he calls the "absolute truth" of supply and demand. Objective Benchmark
Pinpoints the exact entry and exit execution. It answers the question: Exactly when and where do I pull the trigger to minimize risk? Brian Shannon, founder of AlphaTrends and a renowned
To effectively map out an asset, a trader should look at three distinct layers of time: TECHNICAL ANALYSIS USING MULTIPLE TIMEFRAMES
: A period of sideways consolidation where professional money quietly enters positions.
Look for volume to dry up during pullbacks (Stage 2 consolidations) and surge on breakouts. This confirms institutional participation. Common Pitfalls to Avoid This timeframe reveals clear geometric patterns like flags,
65-minute or 15-minute chart. Used to execute trades at precise intraday inflection points. The Day Trader's Triad
: Keeps traders on the right side of institutional capital flows. The Tactical Setup (Daily Chart)
Pinpoints the exact entry and exit execution to minimize risk. Charts Used: 5-minute, 2-minute, or 1-minute charts.