Disclaimer: This article is for educational purposes. Trading stocks and futures involves risk of loss. Always consult with a financial advisor.
When the price breaks out of the 60-minute consolidation pattern on high relative volume, trigger the entry using the 5-minute chart. Place your stop-loss just below the most recent minor low on the intraday chart.
Without this hierarchy, you are guessing. With it, you have a statistical edge. Disclaimer: This article is for educational purposes
Perhaps Shannon's most utilized tool, the Anchored Volume Weighted Average Price shows the average price paid by investors from a specific, important point in time (e.g., earnings report, gap-up high). It acts as dynamic support and resistance.
Shannon’s methodology is rooted in the belief that "only price pays". He categorizes market behavior into four distinct stages that represent the cyclical flow of capital: When the price breaks out of the 60-minute
Mastering technical analysis via multiple timeframes requires patience and discipline. It forces you to ignore noise and wait for the market gears to mesh. When the macro trend, tactical setup, and intraday entry all align perfectly, your win rate improves, your risk decreases, and your confidence grows. Always analyze top-down, execute bottom-up, and let market structure guide your capital. To help apply this to your current layout, tell me:
Brian Shannon - Technical Analysis Using Multiple Timeframes 1K views · 4 years ago YouTube · The Friendly Bear - Verified Trader With it, you have a statistical edge
In his acclaimed trading book, Brian Shannon popularizes a core philosophy: By analyzing various time frames, traders can determine whether buyers or sellers hold the upper hand over the long term, medium term, and short term. The Four Market Stages
Do this, and you will stop trading like a retail gambler and start trading like a professional risk manager.
Typically the 10-minute to 65-minute chart. This helps you identify the specific chart patterns (pullbacks, breakouts, flags) forming within the macro trend.
Brian Shannon’s "Technical Analysis Using Multiple Timeframes" (2008) provides a framework for aligning trading decisions with price action, market structure, and trend analysis across short-term, intermediate, and long-term charts. The text outlines a systematic approach using the four stages of market trends and the Anchored Volume Weighted Average Price (VWAP) to manage risk and identify high-probability entries. For a direct look at the methodology, you can view the document at Scribd . Technical Analysis Using Multiple Timeframes - Amazon UK