Technical Analysis Using Multiple Timeframes Brian Shannon Info

Trend alignment is a prerequisite, not an optional suggestion. When timeframes diverge, the highest timeframe wins.

On this timeframe, traders look for the classic definition of a trend: higher highs and higher lows for an uptrend, or lower highs and lower lows for a downtrend. Shannon emphasizes the use of moving averages—specifically the 50-day and 200-day simple moving averages (SMA)—to gauge the macro trend. If price is structurally below a declining 200-day SMA, long positions are discarded. The daily chart sets the bias.

Technical Analysis Using Multiple Timeframes By Brian Shannon technical analysis using multiple timeframes brian shannon

The price stays above rising moving averages, characterized by higher highs and higher lows. Volatility increases as "smart money" sells to latecomers. The price moves sideways, often forming topping patterns. Stage 4: Markdown The final stage is a sustained downtrend.

Maximum Trading Gains With Anchored VWAP: The Perfect Combination of Price, Time & Volume Technical Analysis Using Multiple Timeframes - Amazon UK Trend alignment is a prerequisite, not an optional

Because you zoomed in to a smaller timeframe, your stop-loss can be tightly placed right below the immediate lower timeframe swing low. This gives you a tiny amount of dollar risk, allowing you to maximize profits if the macro Stage 2 trend resumes. Summary of the Brian Shannon Method High Timeframe (Daily/Weekly) Low Timeframe (5-Min/65-Min) Finding the Trend Direction Finding the Entry Trigger Core Indicator 20, 50, 200 Moving Averages Anchored VWAP / Price Action Risk Function Dictates overall position sizing Dictates exact stop-loss placement Market Phase Identifies Market Stages (1-4) Identifies immediate momentum shifts

Stage 2: Markup (Bull Market) /\ /\ / \ / \ / \____/ \ Stage 3: Distribution (Top) / \ _ _ _ Stage 1: Accumulation \ / \ _ _ _ \___/ \ / \ \ Stage 4: Markdown ___/ \ \ (Bear Market) \ /\ \ / \ \____/ \ Stage 1: Accumulation (The Bottom) consolidates for 15 minutes

On the morning of the trade, the trader watches the 5-minute chart. The stock opens, consolidates for 15 minutes, and then bursts above the morning's opening range with high volume. The entry is triggered .

Shannon's methodology involves analyzing at least three timeframes:

This report synthesizes the core methodologies established by Brian Shannon, CMT , in his foundational book Technical Analysis Using Multiple Timeframes 1. The Core Philosophy: Alignment of Trends