Shannon emphasizes that allow traders to see the bigger picture, preventing them from falling into the trap of trading against the dominant trend. The Three-Timeframe Approach
The most important rules of his system are :
Find a stock whose daily chart shows a strong Stage 2 markup. Price should be trading comfortably above an upward-sloping 20-day EMA and 50-day SMA.
In this article, we will explore Brian Shannon’s legendary approach to technical analysis, focusing on how traders can use to identify high-probability entries, manage risk, and understand institutional order flow.
Using multiple time frames offers several benefits, including: by brian shannon technical analysis using multiple link
: He advocates for checking a long-term chart (Weekly) to identify the major trend, a medium-term chart (Daily) for current market cycle identification, and shorter charts (30, 15, or 5-minute) to fine-tune entry points. Key Indicators : The methodology relies heavily on Price Action as the ultimate indicator, supported by Moving Averages VWAP (Volume Weighted Average Price) Review Highlights Reviewers from Seeking Alpha frequently cite several standout features of the work: Practicality Over Theory
Bridges the gap between daily data and intraday noise. (Note: A standard US market day is 390 minutes. A 65-minute chart divides the day perfectly into 6 equal candles, eliminating the distorted partial candle that a 60-minute chart creates).
: Unlike many academic texts, Shannon writes from the perspective of a "real trader," skipping get-rich-quick fluff to deliver a practical framework for preserving capital. Risk Management focus
: Sideways movement at the top as institutions sell into the remaining demand. Shannon emphasizes that allow traders to see the
"The goal is not to predict the future," Shannon often writes, "but to react intelligently to the present. Multiple timeframe analysis gives you the context to do just that."
by renowned trader and CMT Brian Shannon stands as a timeless cornerstone of modern market literature. Originally published in 2008, the framework teaches traders how to interpret market structure, align trends across varied horizons, manage risk aggressively, and leverage the Volume Weighted Average Price (VWAP) to make objective, emotion-free trading decisions.
dictate the macro trend and market structure.
This public link is valid for 7 days and shares a thread, including any personal information you added. This link or copies made by others cannot be deleted. If you share with third parties, their policies apply. Can’t copy the link right now. Try again later. In this article, we will explore Brian Shannon’s
Used to pinpoint exact entry and exit points , reducing the distance to a stop-loss. The Four Stages of the Market Cycle
Shannon views these as "zones" of supply and demand rather than exact lines, emphasizing that prior resistance often becomes future support . Risk Management: "Job One"
– Increased volatility as institutions begin selling to latecomers. Stage 4: Markdown