Technical Analysis: Using Multiple Time Frame By Brian Shannonpdf Top

The next morning, $CORQ gapped up on earnings. Marco resisted the urge to chase. Instead, he pulled up the .

– A sustained uptrend characterized by higher highs and higher lows.

Marco entered long at $85.35, with a stop-loss just below the 15-minute swing low at $84.80 (risk: $0.55). His initial target was the weekly resistance at $87.50 (reward: $2.15). Risk-to-reward: nearly 1:4.

Price above a rising 5-day MA is considered bullish, while price below a declining 5-day MA is bearish. : The next morning, $CORQ gapped up on earnings

Because you are entering on a lower timeframe, your stop-loss can be tightly placed just below a minor intraday pivot. However, your profit target is based on the wide-open spaces of the higher timeframe chart. This asymmetry—small risk, large reward—is the true secret weapon of MTFA. 5. Integrating Volume Weighted Average Price (VWAP)

Brian Shannon’s approach is built on the belief that successful trading requires a "top-down" view. Instead of trying to guess market tops or bottoms, Shannon advocates for aligning with the existing trend.

Once you have identified a stock in Stage 2, switch to the daily chart. You do not want to chase a stock after a huge run. Wait patiently for a pullback towards a key support level, such as the 50-day moving average or the Anchored VWAP anchored to the breakout day. Shannon often looks for the price to close above a key moving average to confirm that buyers are regaining control. – A sustained uptrend characterized by higher highs

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.

Disclaimer: Technical analysis is a tool for probability, not certainty. Always manage risk.

As Shannon frequently advocates, the best approach is often to "buy high and sell higher"—meaning you buy during a confirmed upward trend, rather than trying to guess the bottom of a falling stock. Risk-to-reward: nearly 1:4

Shannon’s method relies on simple yet effective technical indicators, avoiding overly complex systems.

Traders should always look at higher timeframes to determine the primary trend before entering on lower timeframes.