Brian Shannon is not just an author; he is a Chartered Market Technician (CMT) and a professional trader with decades of hands-on experience. His career began in the early 1990s as a stockbroker at Lehman Brothers, where he was first exposed to chart analysis. Over the years, he served as a Lead Trader and Director of Research at MarketWise Securities before founding his own educational firm, AlphaTrends, in 2006.
Provides the entry point and initial stop-loss placement based on immediate price action. Key Technical Tools in Shannon’s Approach
– The stock is basing; buyers and sellers are in equilibrium. Stage 2: Markup
Scan for stocks in a healthy Stage 2 markup phase. Ensure the price is trading above a rising 20-day moving average.
Brian Shannon - Technical Analysis Using Multiple Timeframes 1K views · 4 years ago YouTube · The Friendly Bear - Verified Trader Brian Shannon is not just an author; he
Brian Shannon's approach to technical analysis using multiple time frames provides a comprehensive framework for understanding market trends and making informed trading decisions. By analyzing charts across different time frames, traders can improve trend identification, enhance trading decisions, and increase trading accuracy.
Now you move to the 30-minute or 15-minute chart. Watch for price action to confirm the trend re-alignment. You want to see the price stabilize and begin to move higher, breaking a small consolidation pattern. As Shannon puts it, "I want to buy when the buyers regain control of that shorter term trend and put it in alignment with that bigger picture trend".
Traders typically use a top-down approach to filter out low-quality setups:
The stock breaks out of the accumulation zone. It makes higher highs and higher lows, guided upward by rising moving averages. This is the primary zone for long traders. Provides the entry point and initial stop-loss placement
One of the most profound lines in Shannon’s PDF is: "The best trade is often the most obvious one." Traders using multiple time frames often wait for 4 different confirmations (price, volume, MA, RSI). By the time they enter, the move is over. Use 2 time frames for signal, 1 for context. Do not overlay 6 indicators on one chart.
A key component of Shannon's framework is identifying where a stock sits within its market cycle. He categorizes price action into four distinct stages:
Technical Analysis Using Multiple Timeframes by Brian Shannon is more than just a technique; it is a mindset. By understanding market structure through multiple lenses, traders can reduce uncertainty and improve their risk-to-reward ratios. Whether you are a day trader or a swing trader, incorporating this top-down analysis is crucial for navigating modern financial markets effectively.
The primary guide for swing traders during a Stage 2 markup. Ensure the price is trading above a rising
: 10-period and 20-period exponential moving averages (EMA). Step-by-Step Multi-Time Frame Execution Strategy
Print out a checklist of the 4-step process above and tape it to your monitor. For 90% of traders, the problem isn't finding the "PDF"—it's executing the discipline of looking at three charts before every single trade. Master the time frames, master the market.
The asset breaks out above resistance. Price makes higher highs and higher lows. The asset trades cleanly above rising moving averages. This is the optimal environment for long positions. Stage 3: Distribution