Locate localized support, key trendlines, or a flattening AVWAP where sellers are losing momentum.
Determines the overall direction of the market tide.
Brian Shannon, a well-known technical analyst, has developed a comprehensive approach to multiple timeframe analysis. His approach involves analyzing markets on three main timeframes:
Typically the Daily or Weekly chart. This tells you what to do (Buy, Sell, or Sit on hands).
Many retail traders fail because they look at a single chart—such as a 5-minute or a 1-day chart—and make trading decisions in a vacuum. Brian Shannon's book corrects this structural flaw by introducing a top-down approach to chart analysis. Why Multiple Timeframes Matter
For those interested in learning more about Brian Shannon's approach to multiple timeframe analysis, a PDF guide is available for free download. The guide, titled "Technical Analysis Using Multiple Timeframes," provides an in-depth look at Shannon's methodology and offers practical examples and case studies.
Most traders fail because they fight the "big picture" trend while staring at a 5-minute chart. Brian Shannon’s philosophy is simple:
Used for precise execution and timing entries/exits (e.g., 5-minute or 15-minute charts).
Momentum slows down and the price moves sideways again. Smart money takes profits, and ownership shifts to retail traders. The moving averages flatten out once more.
One of the most highly-regarded sections of Shannon’s work is his breakdown of the , a concept that provides a robust framework for classifying any market or asset.
