Technical Analysis Using Multiple Timeframes Brian Shannon ((link)) -
The "smart money" is selling to the "late-to-the-party" public. Tighten stops and take profits. Stage 4: Markdown The stock makes lower highs and lower lows. Action: Avoid or short sell. Do not "value hunt" here. ⚓ The Anchored VWAP (AVWAP)
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To help tailor this technical framework further to your exact trading style, could you share a bit more information? Are you primarily focused on or swing trading ?
: Tighten stop-losses, take profits, and do not initiate new long positions. Stage 4: Markdown (The Downtrend) technical analysis using multiple timeframes brian shannon
Shannon's defense against catastrophic loss is a rigid set of rules:
Brian Shannon’s framework reminds us that success in technical analysis does not require a crystal ball. By tracking market stages, utilizing volume-weighted pricing, and demanding alignment across multiple dimensions of time, any trader can build a consistent, objective approach to navigating the financial markets.
while using lower timeframes for precise entries and risk management. Hierarchical View The "smart money" is selling to the "late-to-the-party"
Multiple timeframe analysis (MTFA) is the process of viewing the same asset under different time compressions. Instead of looking for a single indicator to predict the future, you analyze the trend across various horizons to find alignment.
In the world of technical analysis, traders and investors often focus on a single timeframe to make informed decisions about buying or selling a security. However, this approach can be limiting, as it fails to consider the broader market context and potential trends that may be unfolding on other timeframes. To address this limitation, Brian Shannon, a renowned technical analyst, has developed a comprehensive approach to technical analysis using multiple timeframes. In this article, we will explore Shannon's methodology and provide insights into how traders and investors can apply this approach to improve their market analysis and decision-making.
Shannon uses the 5-day MA for dynamic support/resistance, looking for pullbacks to this level as potential entry points in trending stocks. Action: Avoid or short sell
Trading without this perspective is like driving a car while looking only at the front bumper. The higher timeframe serves as your windshield, allowing you to see the road ahead. The lower timeframe acts as your dashboard, showing your immediate speed and performance. 2. The Four Market Stages
: Short sell rallies, buy put options, or stay in cash. 3. Selecting Your Timeframes: The Rule of Three
Buying a breakout on a 5-minute chart when the daily chart is in a severe Stage 4 markdown often results in trapped longs and fast losses. The higher timeframe always carries more weight.
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