Based on Brian Shannon’s principles, here is a systematic way to integrate multi-timeframe analysis into your routine.
MTFA helps you identify when a stock is transitioning from Stage 1 to Stage 2 across different timeframes simultaneously. 5. Putting It All Together: The Checklist
: Stand aside or buy near the clear support floor; avoid aggressive positioning. Stage 2: The Markup Phase
– The stock breaks out of accumulation, entering a sustained uptrend characterized by higher highs and higher lows. Based on Brian Shannon’s principles, here is a
The asset breaks out above the accumulation resistance level on heavy volume. Moving averages begin sloping upward, acting as dynamic support. This is the most profitable stage for long traders. Higher timeframes confirm the macro breakout, while lower timeframes offer low-risk entry points on minor pullbacks to rising moving averages. Stage 3: Distribution
Shannon advocates for a top-down analysis approach using three primary chart horizons: 1. The Macro Trend (Weekly & Daily Charts) Determines the overarching direction of the asset. Identifies major support and resistance zones.
Technical Analysis Using Multiple Time Frames – Brian Shannon Core idea: Price movement on one time frame is influenced by trends on higher time frames. Shannon teaches traders how to align trades with the dominant trend while using lower time frames for precise entries and exits. Key concepts: Putting It All Together: The Checklist : Stand
He realized his mistake. He had been buying "breakouts" on the five-minute chart that were actually crashing into massive resistance on the hourly. He was a soldier charging into a wall his generals already knew was there.
Identifies the overall direction and major support/resistance levels.
It allows for tighter stop-losses by identifying intraday support levels. 2. The Three-Tier Hierarchy Moving averages begin sloping upward, acting as dynamic
What do you trade most? (e.g., Stocks, Crypto, Forex)
Brian Shannon is not an armchair theorist. He is a professional trader with over three decades of direct market experience, beginning his career as a retail stock broker in 1991 before transitioning to full-time trading just three years later. This hands-on experience gives his writing a practical, no-nonsense perspective that many find invaluable. He holds the Chartered Market Technician (CMT) designation and is the founder of AlphaTrends. He's also a respected media personality, having provided analysis for outlets like CNBC and Yahoo Finance.
Only accept trades offering at least a 3:1 reward-to-risk ratio.
: Institutional players are taking profits and unloading shares onto late-to-the-game buyers.