Monthly/Weekly Charts: These are used to identify the primary trend and major areas of historical support and resistance.
Use a 65-minute chart (which divides the 390-minute US market day perfectly into 6 equal candles) to time the entry.
Multiple time frame analysis has numerous practical applications in trading and investing. Here are a few examples:
What is the precise moment to enter to ensure the tightest possible stop-loss?
Use a higher timeframe (like the Daily) to identify a stock in a Stage 2 Markup. Then, drop down to a lower timeframe (like the 5-minute or 15-minute) to find a precise entry point as the stock resumes its momentum.
A sustained uptrend with higher highs and higher lows. This is the most profitable stage for long positions.
This article explores the core philosophies, key techniques, and practical applications outlined in Shannon's seminal work, providing a "full" overview of the methodology that makes him a leading figure in independent trading. The Philosophy: "Price is the Ultimate Factor"
: Locates crucial support and resistance zones, chart patterns, and moving average alignments [1].
Volume: Used as a confirmation tool for breakouts and breakdowns. Risk Management and Trade Execution
Brian Shannon is a pioneer in the use of . Unlike standard intraday VWAP, an Anchored VWAP allows you to start the calculation from a specific, significant psychological event, such as: An earnings release date A major swing high or swing low The first day of the year
Take partial profits at key resistance levels or when the short-term trend breaks to de-risk your position. Ready to Dive Deeper?
Higher highs and higher lows; strong volume on up-days.
Never let a 2-minute chart convince you to short an asset that is in a strong, structural daily Stage 2 uptrend.
An AVWAP drawn from a major daily swing low acts as an incredibly powerful support level when price tests it on an intraday 5-minute chart. 2. Moving Average Alignment
The book, first published in 2008 and re-released in a new edition in 2023, is a copyrighted work. You will find numerous websites on the internet claiming to offer the PDF for free. However, these are almost always . Many of these sites are also vectors for malware, spyware, and other online threats. Furthermore, the author's website explicitly states, "THERE IS NO KINDLE VERSION; ANY KINDLE COPY IS IN VIOLATION OF US COPYRIGHT". This serves as a strong indication that any free, non-physical version you find online is an unauthorized copy.
: Increased volatility as the stock moves sideways after a big advance. This is a high-risk period where "smart money" often exits.
The core philosophy of profitable trading rests on a single truth: . In his seminal work, Technical Analysis Using Multiple Timeframes , acclaimed market technician Brian Shannon outlines a definitive framework for analyzing market structure across nested horizons to minimize risk and maximize edge.