Technical Analysis Using Multiple Timeframes Brian Shannon -
Brian Shannon’s multiple‑timeframe methodology has endured for nearly two decades not because it’s flashy, but because it works. It’s a system built on —three qualities that consistently separate profitable traders from the 90% who fail.
The goal of MTF analysis isn’t to find perfect alignment on every single chart—that rarely happens. Instead, it’s to , then use shorter timeframes for precise execution, and always respect the direction of the larger trend.
When integrated into multiple timeframe analysis, the AVWAP becomes a dynamic, undeniable line in the sand. If an asset pulls back to a daily AVWAP anchored to its last earnings report, and simultaneously shows a bullish reversal pattern on the 5-minute chart, the confluence provides an exceptionally high-probability trade location. It proves that the institutions who bought the earnings news are actively defending their average cost basis. The Step-by-Step Multi-Timeframe Trading Workflow
: Moving averages flatten out and begin to tangle together. technical analysis using multiple timeframes brian shannon
Volume, for Shannon, is the breath behind the price. He rejects low-volume breakouts as traps. A multiple timeframe alignment is only valid if each leg of the move is supported by corresponding volume expansion. If the daily chart shows a new high but the 4-hour chart shows declining volume on the breakout, Shannon stays out.
Look at the Daily chart. If the stock is below a declining 20-day or 50-day moving average, it is in a markdown phase. If it is above a rising 20-day moving average, you have a green light to look for long setups. Step 2: Identify Key Support and Resistance
Never take a trade based on a lower timeframe signal that contradicts the higher timeframe trend. Instead, it’s to , then use shorter timeframes
Churning volume; sideways to volatile movement; smart money exiting positions.
Identify the current phase (e.g., pullback, consolidation). Typical Timeframes: 4-Hour (4H) or 1-Hour (1H) charts.
core philosophy is simple: Price is the only thing that matters, but context is king. It proves that the institutions who bought the
The price stays above rising moving averages, characterized by higher highs and higher lows. Volatility increases as "smart money" sells to latecomers. The price moves sideways, often forming topping patterns. Stage 4: Markdown The final stage is a sustained downtrend.
The lowest levels (15-minute, 5-minute, and even 1-minute) are reserved for execution. They are not used to predict the direction of the market but to time precise entries with tight risk parameters. Shannon uses these charts to "get into the heads of a wider range of participants".
: Used to fine-tune entries, manage risk, and spot precise triggers.