Always place your stop where the "story" of your trade changes. If you bought because a support level held, your stop should be just below that level. 🏁 Conclusion
Identify a minor support area within this intermediate pullback. Step 3: Execute on the Low (15-Minute/5-Minute Chart)
| Timeframe | Role | Key Questions | Typical Holding Period | Key Tools | | :--- | :--- | :--- | :--- | :--- | | | Context / Direction | What is the primary trend? Major S/R zones? | Weeks to months | 200-day MA, trendlines, weekly Anchored VWAP | | Intermediate (Daily) | Strategy / Setup | Where are the risk/reward zones? Is there a pullback or breakout? | Days to weeks | 20/50-day MA, daily volume, daily Anchored VWAP | | Lower (60-min / 15-min) | Execution / Timing | Where to enter? Where to place stop loss? | Hours to 2 days | 20-period MA on 60-min, volume profile, 15-min price action |
Every trade must have a pre-defined stop-loss based on where the technical thesis is proven wrong. Summary: Why This Approach Works technical analysis using multiple timeframes brian shannon
: Never trade only on the short-term chart; always trade in harmony with the trend one timeframe above. 2. The Four Stages of the Market Cycle
Brian Shannon’s approach is rooted in the belief that the trend is your friend, but that trend needs to be confirmed across different durations. He argues that looking at a single timeframe is like looking at a single piece of a puzzle; you might see the color, but not the picture.
(AVWAP), which he calls the "absolute truth" of supply and demand. Objective Benchmark Always place your stop where the "story" of
To apply Shannon's multiple timeframe approach, traders and investors can follow these steps:
These levels represent "memory." When a stock returns to a prior breakout point, it often finds support because traders who missed the first move are eager to buy at the "old" price.
By teaching traders to look at the market through a structural hierarchy, Shannon demonstrates how to identify high-probability, low-risk trade entries. This deep-dive article explores his core philosophies, the four market stages, timeframe continuity, and practical execution tactics. 1. The Core Philosophy of Multi-Timeframe Analysis Step 3: Execute on the Low (15-Minute/5-Minute Chart)
Higher timeframes (Weekly/Daily) define the "tide."
5-minute, 2-minute, or 1-minute chart. Used to spot immediate volume surges and momentum shifts for entries. 4. Integrating Moving Averages and Anchored VWAP
This guide breaks down Shannon’s core philosophies, the four market stages, and how to combine timeframes to gain a definitive trading edge. The Philosophy: Alignment and the "Top-Down" Approach
Brian Shannon, known for his work on technical analysis and trading strategies, emphasizes the importance of using multiple timeframes to gain a comprehensive view of market trends. His approach involves analyzing charts across three main timeframes: