Technical Analysis Using Multiple Timeframes Brian Shannon ((hot)) (2024)

Moving sideways; flat or churning moving averages; institutional buying.

The lower timeframe is strictly for execution. It is never used to determine the core trend, only to time the entry and exit with surgical precision.

If a stock has already stretched far above its 20-day EMA on the daily chart, it is extended. Wait for a multi-timeframe consolidation rather than buying at the absolute peak of momentum. 7. Conclusion: Context is King technical analysis using multiple timeframes brian shannon

Brian Shannon’s Multiple Timeframe Analysis is ultimately a lesson in patience. By forcing the trader to confirm the trend on a higher timeframe before pulling the trigger on a lower one, it removes the emotional impulse to "guess" the bottom or top.

On this timeframe, traders look for the classic definition of a trend: higher highs and higher lows for an uptrend, or lower highs and lower lows for a downtrend. Shannon emphasizes the use of moving averages—specifically the 50-day and 200-day simple moving averages (SMA)—to gauge the macro trend. If price is structurally below a declining 200-day SMA, long positions are discarded. The daily chart sets the bias. If a stock has already stretched far above

Low or erratic. Institutional buyers are quietly building positions without driving the price up.

: The upward momentum stalls. The asset moves sideways again as institutional investors quietly sell their shares to late-coming retail traders. Volatility increases wildly. you are trading blind."

As Shannon himself puts it, when people ask whether he’s bullish or bearish, his answer is always: “It depends.” It depends on which timeframe you’re talking about.

Stage 2: Markup (Bull Market) /\ /\ / \ / \ / \____/ \ Stage 3: Distribution (Top) / \ _ _ _ Stage 1: Accumulation \ / \ _ _ _ \___/ \ / \ \ Stage 4: Markdown ___/ \ \ (Bear Market) \ /\ \ / \ \____/ \ Stage 1: Accumulation (The Bottom)

"If you don't understand the context of the market you are trading in, you are trading blind."