Shannon Technical Analysis Using Multiple Link [best] - By Brian
| Step | Timeframe | Action | Indicator | | :--- | :--- | :--- | :--- | | | Daily | Determine bias (Bullish/Bearish) | 200 EMA, Anchored VWAP | | 2 | 60-min | Identify pullback zone | 20 EMA, prior high/low | | 3 | 5-min | Execute entry & manage risk | Volume profile, candlestick confirmation |
Lower timeframes are purely for execution. You use these charts to observe the precise moment buyers overpower sellers. By entering trades based on lower timeframe reversals that align with higher timeframe trends, you can place incredibly tight stop-losses. This maximizes your risk-to-reward ratio. Integrating the Anchored VWAP (AVWAP)
Technical Analysis Using Multiple Timeframes by Brian Shannon is not just a book; it is a framework for disciplined trading. By breaking down market action into manageable timeframes and focusing on price structure, traders can move away from guessing and toward high-probability trading.
These stages are not static predictions but dynamic descriptions of market character, providing context for risk and opportunity in every trade. by brian shannon technical analysis using multiple link
Shannon’s methodology begins with rejecting the notion of a "perfect" single chart. He argues that looking at just a 5-minute chart is like looking at a single tree while ignoring the forest. His system relies on a three-tiered hierarchy:
Brian Shannon insists that price is an auction. If you are looking at a Daily breakout but the Weekly Volume Profile shows a massive High Volume Node just $1 above, that breakout will likely fail. The "link" between weekly volume and daily price is the most predictive relationship in the market.
Shannon’s methodology centers on the idea that the "market" is a collection of diverse participants—from intraday scalpers to institutional swing traders—each watching different clocks. | Step | Timeframe | Action | Indicator
Shannon's primary focus is on price action, volume, and the insights revealed by combining these across different time scales. His approach is refreshingly indicator-light; he believes that too many tools lead to "analysis paralysis".
This is your starting point. The daily chart establishes the overall health of the asset. You look for major support and resistance levels, long-term moving averages, and the primary trend direction. If the daily chart is in a structural downtrend, buying intraday bounces is statistically dangerous. 2. The Hourly Chart (The Tactical Setup)
When an asset holds above its AVWAP on the daily chart, it proves that the average buyer from that major event is in profit. When you zoom in to the 10-minute chart, you look for intraday AVWAP pullbacks to act as support. This creates a powerful, multi-timeframe confluence of volume and price. Step-by-Step Multi-Timeframe Trading Process This maximizes your risk-to-reward ratio
Mastering the Market: Technical Analysis Using Multiple Timeframes by Brian Shannon
– A markdown phase where the price falls, and the trend is clearly downward. Key Technical Tools
This is the "fair value" link. Price tends to revert to HVNs. The Low Volume Node (LVN): This is the "gap" link. Price moves quickly through these.
The goal is . When all links are aligned—for example, when the weekly, daily, and hourly charts are all pointing upwards—trader is said to have a "high-convergence" opportunity with the highest probability of success. Without this alignment, a trader is "fighting the tide," a practice Shannon actively avoids.