Shannon is famous for his discipline rule: Do not take a trade if the lower time frame is moving against the higher time frame trend.
This public link is valid for 7 days and shares a thread, including any personal information you added. This link or copies made by others cannot be deleted. If you share with third parties, their policies apply. Can’t copy the link right now. Try again later.
Shannon argues this trade has a high probability of success because the LTF trigger is backed by the HTF gravity.
is a foundational trading guide focusing on aligning trade entries with broader market trends across different time periods. The book, widely considered essential for identifying low-risk setups, highlights key concepts such as the four stages of market cycles and the use of Anchored Volume Weighted Average Price (AVWAP). Learn more about the author's approach at Alphatrends.net Amazon.com Amazon.com: Technical Analysis Using Multiple Timeframes Shannon is famous for his discipline rule: Do
Analyze the daily chart: Is the long-term trend up (Stage 2 Markup), down (Stage 4 Decline), or neutral (Stage 1/3)? Your primary bias should never fight this.
Shannon argues that the "message of the market" is best understood by looking at the interplay between different chart periods. A primary timeframe (such as the daily chart) provides the broader trend context, while lower timeframes (such as 30-minute or 5-minute charts) are used to refine entry and exit points with precision.
Imagine Stock XYZ.
If you trade based solely on a 5-minute chart, you are trading in a vacuum. You cannot see the larger forces—at play on the daily or hourly charts—that are dictating the direction of the market.
The book provides numerous practical examples and case studies of how to apply multiple time frame analysis to real-world trading scenarios. Shannon demonstrates how to:
Shannon is ruthless about this. If the daily chart is in a downtrend (lower lows, below key moving averages), do not take long entries on the 5-minute chart. You are fighting the tide. If you share with third parties, their policies apply
Applying multiple time frame analysis in practice involves several steps:
Technical Analysis Using Multiple Timeframes isn't just about looking at multiple charts—it's a complete framework for market analysis and trade execution. First published in 2008 and containing 184 pages, the book is structured to guide readers from foundational concepts to advanced execution techniques.
He has since expanded on his work with a second book, Maximum Trading Gains With Anchored VWAP , published in January 2023. This book builds on his foundational work to provide deep dives into a specific tool that helps identify exactly where institutions are active in the market. Shannon argues this trade has a high probability
Brian Shannon’s "Technical Analysis Using Multiple Time Frame Analysis" outlines a methodology for understanding market structure by aligning higher time frame trends with lower time frame execution. The approach emphasizes identifying four market stages—accumulation, markup, distribution, and markdown—using moving averages, anchored VWAP, and support/resistance zones to manage risk and increase profitability. For a detailed breakdown of Shannon's techniques, the book remains a foundational text for traders. Share public link