Shannon advocates for a top-down analytical process to ensure you never trade against the dominant market force:
* Find the Trend: Only trade in the direction of the trend on the highest timeframe you are analyzing. Conclusion Shannon advocates for a top-down analytical process to
Shannon’s approach is built on the concept that every stock moves through a repeatable four-stage cycle: Establish the Anchor Trend Open the daily chart
To find high-probability trade entries, execute this systematic sequence across your charting horizons. 1. Establish the Anchor Trend Open the daily chart. Identify if the asset is in a Stage 2 uptrend. The methodology emphasizes the Four Stages of market
Brian Shannon’s Technical Analysis Using Multiple Timeframes outlines a strategy for identifying high-probability trading opportunities by aligning market trends across weekly, daily, and intraday charts. The methodology emphasizes the Four Stages of market cycles, the use of Anchored VWAP for volume-weighted analysis, and managing risk by trading in the direction of the dominant trend. Detailed insights into these principles can be found through official materials at Alphatrends .
To find high-probability trade setups, a trader must systematically work from the macro trend down to the micro execution. Below is a tactical blueprint for both swing traders and day traders. Strategy for Swing Traders (Holding Days to Weeks) 1. The Weekly Chart (The Trend) Identify the major structural trend.