Drop down to the . Look for a healthy pullback within that larger Stage 2 uptrend. You are looking for price to test a key support area, such as a prior breakout zone or a rising moving average. 3. Pinpoint the Entry
Start with the daily chart to ensure you are trading in the direction of the primary trend. Look for stocks in a Phase 2 markup phase, where the 20-day and 50-day moving averages are sloping upward. Step 2: Locate the Setup on the Intermediate Chart
What is your typical ? (Day trading, swing trading, or long-term investing?) Which charting platform do you currently use? Share public link
If you want to dive deeper into these charts, let me know if you would like me to explain how to calculation step-by-step or map out a specific Stage 2 breakout blueprint for your trading plan. Share public link Drop down to the
: Use this moving average as your primary barometer for short-term trend strength.
: Utilize weekly or daily charts to identify the dominant market trend and overall structure.
A foundational element of Shannon’s book is the concept that all assets move through four distinct market cycles or stages. Recognizing these stages across multiple timeframes allows traders to position themselves on the side of institutional money. Stage 1: The Accumulation Phase Step 2: Locate the Setup on the Intermediate
Multi-timeframe analysis involves looking at the same asset (like a stock) on different timeframes (e.g., weekly, daily, 30-minute, and 5-minute charts) to get a complete picture of its behavior and potential future moves.
To trade successfully, you must understand the hierarchy of timeframes:
Price moves sideways in a range after a prolonged downtrend. Drop down to the
Can lead to "analysis paralysis" if too many competing timeframes contradict each other.
Brian Shannon actively shares updates, video commentary, and live applications of his multiple timeframe analysis directly through his educational platform.
Open the 10-minute or 5-minute chart to time the entry. Look for a break above a short-term descending trendline or a minor resistance level. Place your protective stop-loss just below the most recent minor swing low to minimize downside risk. Critical Trading Principles from the Book