Technical Analysis Using Multiple Timeframes Brian Shannon !link! -

Defines the overall market structure and structural bias.

Traditional technical analysis typically involves analyzing a single timeframe, such as a daily or weekly chart, to identify trends, patterns, and potential trading opportunities. While this approach can be effective in identifying short-term trends and patterns, it often fails to consider the larger market context and potential long-term trends that may be emerging.

All three moving averages are aligned downward. Price is making lower highs and lower lows. Look for short trades or stay entirely in cash. Do not attempt to catch falling knives.

Once you have established the direction from the Intermediate chart, you zoom in. This chart is purely tactical. It is used to time your entry and manage your risk.

Every trade needs a defined exit before it’s entered. Shannon places his technical analysis using multiple timeframes brian shannon

: The price stays below declining moving averages.

Whether you’re a day trader, swing trader, or long‑term investor, adopting Shannon’s multiple‑timeframe perspective will transform the way you see the markets. You’ll stop fighting trends and start flowing with them. You’ll replace hope with confirmation, and guesswork with a systematic edge.

Even with a clear framework, traders find ways to sabotage themselves. Here are the most frequent errors Shannon observes—and how to correct them.

(2008), he outlines a systematic methodology for identifying low-risk, high-probability trades by aligning different chart intervals. Core Philosophy: "Only Price Pays" Defines the overall market structure and structural bias

Here is a breakdown of Shannon’s approach to using multiple timeframes to find high-probability trades.

Finally, the trader analyzes the short-term hourly chart, which reveals a bullish breakout pattern.

Suppose a trader wants to analyze the stock of a popular technology company, currently trading at $100. The trader begins by analyzing the long-term monthly chart, which reveals a bullish trend with a clear uptrend line.

Disclaimer: This article is for educational purposes only and summarizes the teachings of Brian Shannon. It does not constitute financial advice. All three moving averages are aligned downward

: AVWAP reveals the "breakeven" point for all participants since a chosen start point, highlighting where buyers or sellers are in control.

Most traders are linear thinkers. They look at a daily chart and see an uptrend, so they buy. Brian Shannon argues that this is like navigating a cross-country road trip using only a satellite image of the Earth. It gives you the big picture but misses the potholes, gas stations, and traffic jams.

Brian Shannon , CMT, is a renowned equity trader and the founder of Alphatrends