: Used for fine-tuning entries and managing risk with precision. The Four Stages of the Market Cycle
To effectively map out an asset, a trader should look at three distinct layers of time: TECHNICAL ANALYSIS USING MULTIPLE TIMEFRAMES
: Identifies intra-day patterns and VWAP levels. technical analysis using multiple timeframes brian shannon
Keeps traders from reacting frantically to minor intraday fluctuations that don't alter the bigger picture.
The daily chart acts as the strategic compass. This is where you determine the overall health of the asset and answer the binary question: Should I be looking to buy this asset, sell it short, or pass entirely? : Used for fine-tuning entries and managing risk
– The uptrend stalls. Big players begin selling to latecomers, and price action becomes volatile and sideways. Stage 4: Decline
Once the weekly chart confirms a bullish bias, move down to the daily chart. Here, Shannon looks for the "Fallen Angel" or "Slingshot"—a stock that has pulled back to a logical support level (like the 50-day SMA or a previous resistance-turned-support) without breaking the weekly trend. The daily chart acts as the strategic compass
Technical Analysis Using Multiple Timeframes : Brian Shannon
When the monthly, weekly, and daily charts all show an upward trend, the probability of success for a long trade increases significantly 1.2.4 .
Lower highs and lower lows; price gets rejected consistently at moving averages.
The stock prints higher highs and higher lows. It consistently trades above a rising 50-day or 20-day moving average.