Technical Analysis Using Multiple Time Frame By Brian Shannon.pdf =link= Here
Shannon is ruthless about this. If the daily chart is in a downtrend (lower lows, below key moving averages), do not take long entries on the 5-minute chart. You are fighting the tide.
"Van Gogh couldn't paint using just one color. A true artist mixes different colors, knowing what ratio they need to create the desired hues. They also use multiple brushes, each serving a different purpose. Similarly, different timeframes serve different purposes. To get the full message of the market, you shouldn't limit yourself to just one timeframe."
By identifying which stage the market is in on the , you avoid buying at the top (Distribution) and shorting at the bottom (Accumulation). Shannon is ruthless about this
To understand how these concepts work together, consider a real-world example Shannon discussed on Yahoo Finance following a Consumer Price Index (CPI) report. After the report was released, Shannon anchored a VWAP to the beginning of that trading day. The market initially dropped hard, then rallied up to touch that anchored VWAP midday before dropping again. The next morning, the market again rallied up to the same anchored VWAP from the previous day—and once more fell away from it.
AI responses may include mistakes. For financial advice, consult a professional. Learn more Amazon.com: Technical Analysis Using Multiple Timeframes "Van Gogh couldn't paint using just one color
| Role | Timeframe Type | Function | | :--- | :--- | :--- | | | Higher (weekly/daily) | Defines overall trend direction and major S/R zones | | Trade Structure | Intermediate (4h/1h) | Reveals pullbacks and continuation patterns | | Precision | Lower (15m/5m) | Refines entries, exits, and stop placement |
Before looking at any shorter-term chart, examine the weekly or monthly chart. Identify whether the stock is in a primary uptrend, downtrend, or ranging environment. Mark key support and resistance levels. Similarly, different timeframes serve different purposes
If you haven't read Technical Analysis Using Multiple Timeframes , it is highly recommended. It is a concise, no-fluff manual that belongs on every trader’s digital bookshelf.
Yes. Unlike many pure technical traders, Shannon incorporates both underlying fundamentals and technical charts. He looks at revenue growth, earnings, and other fundamentals to help better understand the charts he is analyzing.
For example, if a stock is in the markup stage of a weekly chart—meaning higher highs and higher lows—then pullbacks on a daily or 60-minute chart represent potential buying opportunities. The trend is your friend, as the saying goes, but Shannon adds a crucial nuance: you must first identify what the trend is on the timeframe that matters for your trading style . Trying to trade against the higher timeframe trend is a recipe for losses.
By Brian Shannon