Typically the weekly or monthly chart. This frame answers one question: What is the primary direction of the market? Shannon argues that a trader should never fight this trend. If the weekly chart shows a clear uptrend (higher highs and higher lows), all lower-time-frame trades should only be long. This prevents the trader from “catching a falling knife” based on a minor intraday bounce.
Protect profits, raise stop-losses, and avoid buying breakouts. Stage 4: The Markdown Phase
Shannon’s approach is practical, employing a focused set of indicators to clarify market structure and gauge supply and demand. Typically the weekly or monthly chart
Before considering a trade, you must first determine which Stage the asset is currently in.
Shannon advocates for a top-down analysis to ensure you aren't fighting the "big picture" trend: If the weekly chart shows a clear uptrend
Common Techniques and Signals
Shannon emphasizes that no single chart provides a complete picture. He typically analyzes five timeframes simultaneously to see how short-term trends interact with larger moves: Higher Timeframes (Weekly/Daily): Stage 4: The Markdown Phase Shannon’s approach is
Brian Shannon’s "Technical Analysis Using Multiple Timeframes" provides a framework for identifying high-probability trades by aligning price action across different time horizons, focusing on trend direction and market cycles. Key strategies include utilizing the Anchored VWAP (AVWAP) for support/resistance, analyzing volume for trend strength, and strict risk management to protect capital. Detailed concepts and educational materials are available at Alphatrends Amazon.com
If the daily chart is in a Stage 4 markdown, do not attempt to scalp a long position on a 5-minute chart based on a minor oversold bounce. The macro trend will eventually overwhelm the micro setup.
By physically viewing these side by side (daily on the left, 30-minute on the right), Shannon can "see the interplay of bigger trends with shorter-term timeframe trends".
MTFA is based on the premise that markets are fractal. Trends exist simultaneously across minutes, hours, days, and weeks. A stock can look bearish on a 5-minute chart but remain in a powerful primary uptrend on a weekly chart.