: Short sell rallies, buy put options, or stay in cash. 3. Selecting Your Timeframes: The Rule of Three
: Avoid deploying capital early; wait for a definitive breakout. Stage 2 Markup
Start here to determine the dominant trend . Ask: Are we in a strong bull market, bear market, or trading range? If the weekly trend is down, avoid taking long positions based on daily chart setups 1.2.2. Step 2: The Intermediate View (Daily) technical analysis using multiple timeframes brian shannon
Big players build positions; volatility is low, and the price remains below key moving averages. This is the most profitable phase for long positions.
Mastering Technical Analysis Using Multiple Timeframes by Brian Shannon : Short sell rallies, buy put options, or stay in cash
, pioneered by veteran trader Brian Shannon , is a foundational framework for modern market analysis. Shannon's definitive book, Technical Analysis Using Multiple Timeframes , bridges the gap between chaotic short-term price movements and cohesive, long-term market trends. By filtering out market noise, this methodology helps swing traders identify low-risk, high-probability entry points . 1. Core Principles of Multi-Timeframe Alignment
Is there a trigger (like a breakout) to buy? 3. Key Tools in Shannon's Approach Stage 2 Markup Start here to determine the dominant trend
You can also use a to assess short‑term trend direction. Price above an increasing 5‑day VWAP is considered bullish; price below a decreasing 5‑day VWAP is bearish.