60-minute or 30-minute Chart. Used to locate chart patterns (like flags, triangles, or rectangles) and track near-term moving averages.
Determines the overall direction of the market (Bullish, Bearish, or Neutral). It acts as the "tide."
“The AVWAP represents the absolute truth of the relationship between a stock’s supply and demand, and is 100% objective.” – Brian Shannon, CMT
Brian Shannon, a well-known technical analyst, introduced the concept of using multiple time frames in technical analysis to gain a more comprehensive view of market trends. In his book, Shannon explains how to apply this approach to identify profitable trading opportunities. Let's dive into a story that illustrates the practical application of this concept. 60-minute or 30-minute Chart
Brian Shannon’s "Technical Analysis Using Multiple Timeframes" provides a foundational framework for traders by aligning market trends across weekly, daily, and intraday horizons. The methodology centers on identifying four distinct market stages—accumulation, markup, distribution, and markdown—combined with tools like Anchored VWAP to objectively assess supply and demand. For detailed information and to explore the official material, visit Alphatrends . Amazon.com: Technical Analysis Using Multiple Timeframes
Shannon is best known for two influential books:
The book has been described as a “textbook” for traders, but one that is practical and immediately applicable. It has sold over 18,000 copies and is used in CMT (Chartered Market Technician) preparation programs. It acts as the "tide
: Price is paramount, but volume reveals the emotional condition of buyers and sellers. Large volume without further upside indicates distribution. Moving Averages
Are you looking to apply this framework to ?
Switch to the 5-minute chart to time your entry. Do not buy blindly while the stock is pulling down. Instead, wait for a micro-structural shift: you can follow this structured workflow
Brian Shannon’s "Technical Analysis Using Multiple Timeframes" provides a framework for identifying low-risk, high-probability trades by aligning price action across weekly, daily, and intraday charts. The methodology emphasizes the Four Stages of Market Cycles (Accumulation, Markup, Distribution, Markdown) and the use of Anchored Volume Weighted Average Price (AVWAP) to determine support and resistance. Access a summary of the report via Scribd .
Brian Shannon's process is disciplined and methodical. To implement multiple timeframe analysis, you can follow this structured workflow, which mirrors his approach using a blend of timeframes like weekly, daily, and intraday charts.
Mastering the Markets: A Deep Dive into Multiple Timeframe Analysis by Brian Shannon