Scan for stocks in a clear Stage 2 markup on the daily chart, trading above a rising 20-day EMA.
Shannon categorizes all asset price action into four distinct cyclical stages:
: Sideways movement after a downtrend where big players build positions. Markup (Stage 2) : A clear uptrend; the ideal stage for long positions. Distribution (Stage 3) : Sideways movement after an uptrend as big players exit. Markdown (Stage 4) : A clear downtrend; the stage for short positions. Seeking Alpha Key Technical Tools Amazon.com: Technical Analysis Using Multiple Timeframes Scan for stocks in a clear Stage 2
The market has evolved significantly since the early 2000s; Shannon’s more recent webinars and his work at Alphatrends provide the necessary updates to his original theories.
Multiple timeframe analysis is the practice of examining price movements across several different chart intervals before executing a trade. Instead of relying solely on a single chart (such as a daily view), a trader using this methodology looks for consistency—or "alignment"—across longer, intermediate, and shorter timeframes. Distribution (Stage 3) : Sideways movement after an
The book outlines a specific pattern often referred to as the .
Used to find the macro trend and daily key levels. Multiple timeframe analysis is the practice of examining
Brian Shannon's Technical Analysis Using Multiple Timeframes
This report is for informational purposes only. We do not host, link to, or condone the unauthorized distribution of copyrighted material.
Understanding the market cycle is the first step; the practical application comes from aligning price action across different timeframes. The central premise of Shannon's method is that trading decisions should never be made in a vacuum using only a single chart.
by Brian Shannon is a cornerstone text for modern traders. First published in 2008, this book teaches traders how to look at the market through different time horizons to find high-probability trade setups.