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The book also includes "tips on how to recognize and control costly emotional decisions." This focus on psychology is what separates his work from purely mechanical systems. No indicator or strategy can succeed without the discipline to follow its rules and the emotional control to accept losses as part of the process.
The stock breaks out of its Accumulation base and begins making higher highs and higher lows.
Looking at too many time frames (e.g., 1-min, 5-min, 15-min, 30-min, 1-hour, 4-hour, Daily) will cause conflicting signals. Stick to three.
The ultimate goal is —finding points where all time frames are aligned in your favor, which dramatically increases the probability of a successful trade. The book also includes "tips on how to
Shannon often works with three timeframes, each a multiple of the next (e.g., 4x to 6x ratio). A common setup:
Technical Analysis Using Multiple Timeframes by Brian Shannon: A Comprehensive Guide
Shannon is widely credited with popularizing "Anchored VWAP" for retail traders. Unlike a standard moving average, VWAP accounts for both price and volume. An anchored VWAP starts at a specific significant point (e.g., a major earnings gap or a swing low). Looking at too many time frames (e
To implement this strategy successfully, you must analyze three distinct timeframes simultaneously. Shannon categorizes these based on your intended holding period. For a standard swing trader, the structure looks like this: 1. The Macro Timeframe (The Daily Chart)
Brian Shannon’s "Technical Analysis Using Multiple Timeframes" advocates for aligning long-term, daily, and intraday charts to identify high-probability trading setups through market confluence. His framework emphasizes trading in the direction of the trend across four market stages, heavily utilizing Anchored VWAP to measure participant sentiment. Explore a detailed summary of these methods at
Brian Shannon ’s “ Technical Analysis Using Multiple Timeframes ” is widely considered a foundational text for traders seeking to understand the "why" and "when" behind market movements. Often searched for in PDF format, the principles outlined by Shannon (founder of Alphatrends.net) provide a structured approach to viewing the market through the lenses of trend, price, and time. Shannon often works with three timeframes, each a
You are trading with the weekly trend, buying value on the daily, and using the 60-min for timing. Your stop loss is tight (below the 60-min low), but your profit target is large (the weekly high).
Support at the bottom of the distribution zone gives way. Price moves into a steady pattern of lower highs and lower lows. The asset trades comfortably below its declining moving averages. Shannon heavily emphasizes a gold rule: Instead, this is the prime environment for short sellers. 3. Core Indicators and Tools inside Shannon's Work