Watch for the price to break above the 60-minute resistance level. Trigger your entry on the 5-minute chart when it clears the morning high with strong volume.
Place stop-losses below the recent swing low (for longs) or above the swing high (for shorts) identified on the intermediate chart. 4. Key Advantages of This Approach
Traders use a top-down approach to find high-probability setups. Shannon recommends using three primary timeframes depending on your trading style. 1. The Higher Timeframe (The Trend)
: The book categorizes price action into four distinct phases: Accumulation (Stage 1), Markup (Stage 2), Distribution (Stage 3), and Decline (Stage 4).
| Method | Cost | Pros | |--------|------|------| | | ~$50–70 | Full charts, updates, lifetime access | | Check your local library | Free | Interlibrary loan possible | | Audible audiobook | 1 credit (~$15) | Great for commuters | | Shannon’s own website (alphatrends) | Varies | Includes video examples & current markets | | Used book (eBay / AbeBooks) | $20–40 | Often like-new condition |
Execute the trade when price breaks out of an intraday pattern, placing the stop just below the intraday low. 4. Key Technical Indicators for Multi-Timeframe Trading
Start with the daily chart to determine the overall market structure. Look at the 20-day, 50-day, and 200-day moving averages. Is the asset in a Stage 2 Markup or a Stage 4 Markdown? Only trade in the direction of the dominant daily trend. Step 2: Refine the Structure (65-Minute or 1-Hour Chart)
Let me know how you'd like to about this method.* 2008 Technical Analysis Using Multiple Timeframes | PDF
For a limited time, we're offering an exclusive free PDF of Brian Shannon's book, "Technical Analysis Using Multiple Timeframes." This comprehensive guide provides a detailed overview of Shannon's approach to multi-timeframe analysis, including practical examples and case studies.
Connects the daily trend to your execution plan. Look for alignment here before dropping lower. The Execution View (The 5-Minute or 15-Minute Chart)