Brian Shannon’s "Technical Analysis Using Multiple Timeframes" provides a framework for trading by aligning long-term market trends with short-term execution, utilizing the 4 Stages of the Market Cycle [1]. Key to this methodology is utilizing Anchored VWAP to identify institutional support and resistance zones, enabling precise, low-risk trade entries [1]. Share public link
Determine if the asset is in a Stage 2 Uptrend or a Stage 4 Downtrend. You want to trade exclusively in the direction of this trend. 2. The Intermediate Timeframe (The Setup) Charts Used: 60-Minute or 30-Minute. Purpose: Observe the market structure of the recent move. You want to trade exclusively in the direction of this trend
This comprehensive guide explores the core concepts of multiple time frame analysis, Brian Shannon’s signature strategies, and how to apply these frameworks to your daily trading routine. The Philosophy of Multiple Time Frame Analysis Purpose: Observe the market structure of the recent move
The first and most crucial rule of this approach is that . A bullish signal on a 5-minute chart is not a valid reason to buy if it is in opposition to a bearish daily trend. As Shannon states, “The longer your timeframe, the fewer decisions you need to make, and the better your chance of achieving consistent profitability”. For longer-term position traders, the primary trend on a weekly chart offers the highest level of conviction. For swing traders holding positions for days to weeks, the daily chart provides the natural main trend. Day traders, while focusing on intraday charts, should still seek to align their trades with the direction of that higher timeframe trend. while focusing on intraday charts
Determines the overall direction of the market (Bullish, Bearish, or Neutral). It acts as the "tide."
Reviews from professional and retail traders highlight how Shannon’s book filled a gap that other technical analysis books often miss: