Technical Analysis Using Multiple Timeframes Brian Shannon 2021 Jun 2026

If the daily chart is in a structural Stage 4 markdown, a trader should not look for long setups on shorter intervals. You want to trade in the direction of the dominant, larger trend. 2. The Intermediate Timeframe (The Setup)

Shannon urges traders to avoid binary questions like "Are you bullish or bearish?" Instead, he argues that the answer always depends on the timeframe. A stock might show a declining long-term trend while simultaneously exhibiting a short-term upward bounce. Understanding these nuances is the key to successful analysis.

, provides a systematic framework for understanding market structure and aligning trades with the dominant trend. Here is how you can use Shannon’s methodology to elevate your trading game. 1. Understanding the Four Stages of Market Cycles

He coaches that far more traders fail at day trading than swing trading because intraday trading amplifies emotional errors. By using multiple timeframes, a trader removes the need to "predict" the market; they simply react to evidence of the primary trend shifting. Shannon is a believer in the philosophy: if the ribbon is trending up, stay with the trend. Don't predict the bottom; wait for the lower timeframe to align, then buy slightly higher with confirmation. It’s better to buy higher with a trend than lower with hope. technical analysis using multiple timeframes brian shannon

The intermediate timeframe helps identify the current trend within the context of the higher timeframe. It helps in spotting potential reversal areas or continuation patterns.

While Brian Shannon utilizes moving averages (like the 50-day and 200-day), he is famously known as a champion of the .

: Daily charts refine the context and timing for swing traders. If the daily chart is in a structural

Successful trading requires understanding market structure, trend direction, and precise execution. One of the most effective frameworks for achieving this consistency is multiple timeframe analysis. This approach was popularized and refined by veteran market technician Brian Shannon, CMT, founder of Alphatrends and author of the seminal book "Technical Analysis Using Multiple Timeframes."

Which do you trade most frequently (e.g., stocks, crypto, options)? Do you prefer trading breakouts or buying pullbacks ?

A specific tool Shannon highlights is the 5-day moving average. He views this as the line representing the short-term sentiment of market participants. The Intermediate Timeframe (The Setup) Shannon urges traders

Refines the trend and helps identify current stages and moving average alignments. Intraday Charts (30, 15, or 5-minute):

Use the 5-minute chart to wait for a "higher high" and a breakout above the 15-minute VWAP to enter the trade. Why Multiple Timeframe Analysis Works

The ultimate arbiter of the long-term trend (Stage 2 vs. Stage 4). Anchored VWAP (AVWAP)