Technical Analysis Using Multiple Timeframes Brian Shannon

You can also use a to assess short‑term trend direction. Price above an increasing 5‑day VWAP is considered bullish; price below a decreasing 5‑day VWAP is bearish.

Knowing exactly why a trade is being taken based on structural alignment drastically reduces emotional decision-making.

By analyzing multiple timeframes, the trader gains a more comprehensive understanding of the market trend and potential trading opportunities. In this case, the trader may consider buying the stock based on the bullish breakout pattern on the hourly chart, while also considering the longer-term bullish trend on the monthly chart.

The stock prints higher highs and higher lows. It consistently trades above a rising 50-day or 20-day moving average. technical analysis using multiple timeframes brian shannon

Shannon is a massive proponent of VWAP and anchored VWAP (AVWAP). VWAP acts as the ultimate truth of intraday value, showing the average price paid based on volume. Buying a stock when it is above a rising VWAP on the 5-minute chart ensures you have intraday momentum on your side.

Avoid heavy long positions; wait for an official breakout. Stage 2: Markup (The Bullish Trend)

Use the 20-day EMA for short-term momentum and the 50-day and 200-day SMAs for macro trend health. You can also use a to assess short‑term trend direction

Brian Shannon popularized the highly effective use of the , specifically Anchored VWAP (AVWAP) , alongside standard moving averages.

: Trading against the primary trend reduces your probability of success. 2. The Four Stages of the Market Cycle

Provides the "big picture" trend and major support/resistance levels. By analyzing multiple timeframes, the trader gains a

Lower timeframes (65-minute/10-minute) define the "waves."

When multiple timeframes align—meaning the long-term trend, intermediate trend, and short-term trend are all pointing in the same direction—you get a high-probability trading environment. The Foundation: The Four Market Stages