Brian Shannon, CMT, is the author of Technical Analysis Using Multiple Timeframes (2008, 184 pages) and the founder of AlphaTrends. His central insight is that financial markets are : similar patterns and trends recur across every scale, from a one‑minute chart to a monthly chart. Instead of asking “Which timeframe is best?” Shannon teaches that the real edge comes from understanding how timeframes interact – always beginning with the higher, more reliable context and then drilling down for precise execution.
If a stock is trading above an AVWAP anchored to a major swing low on the daily chart, the buyers from that event are, on average, in control and making money. When the price pulls down to that AVWAP line on a shorter time frame, it frequently acts as a powerful support level where institutional buying steps back in. 4. Step-by-Step Execution Strategy
Confusion and denial. Institutional players are selling their positions to late-coming retail buyers. Brian Shannon, CMT, is the author of Technical
Among the definitive guides on this subject is the methodology pioneered by Brian Shannon, CMT, founder of Alphatrends and author of the seminal book, Technical Analysis Using Multiple Timeframes . His approach provides traders with a top-down framework to identify trends, manage risk, and execute trades with high precision. 1. The Core Philosophy: Alignment of Trends
The core of Shannon's methodology is a top-down analysis process. Instead of jumping straight into a 5-minute chart looking for an entry, the disciplined trader starts with the highest available perspective. Shannon recommends a practical stack: weekly, daily, 30-minute, 15-minute, and 5-minute timeframes. If a stock is trading above an AVWAP
To find precise entry points, time breakouts, and manage risk. The Four Stages of Market Cycles
Shannon’s entire multi‑timeframe framework is designed to . Shorter timeframes force fast decisions and amplify greed and fear; longer timeframes give you breathing room and clearer signals. Step-by-Step Execution Strategy Confusion and denial
The market is a complex ecosystem where different participants operate on vastly different schedules. A hedge fund manager might look at a monthly chart to build a position over several quarters. Meanwhile, a day trader looks at a 5-minute chart to capture a quick price move before lunch.