Determines the trend context within the larger movement.
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He predominantly uses the 10-day, 20-day, and 50-day exponential moving averages (EMAs) or simple moving averages (SMAs) to judge trend slope and dynamic support/resistance.
Shannon teaches that a trade should be aligned with the higher timeframe trend, while the lower timeframe is used to identify optimal entry points. This approach reduces noise and increases the probability of success. The Three Pillars of Analysis Which way is the market moving? Volume: Is there conviction behind the move? Price: Where are the key levels of support and resistance? 2. Setting Up Your Timeframes Determines the trend context within the larger movement
Key horizontal lines representing price areas where buying or selling pressure is likely to intensify. Trendlines: Used to visualize the slope of the trend. Putting It Together: The "Top-Down" Approach
The central tenet of Brian Shannon's philosophy is that . While indicators are helpful, they are derivatives of price. Therefore, analyzing price behavior across different timeframes provides a holistic view of supply and demand.
A cornerstone of Brian Shannon's educational framework at Alphatrends is recognizing the continuous cycle of capital flow. All assets move through four primary structural stages: Multi-Timeframe Technical Analysis Guide | PDF - Scribd He predominantly uses the 10-day, 20-day, and 50-day
Shannon’s method relies on simple yet effective technical indicators, avoiding overly complex systems.
If you are struggling with consistency, the answer often lies in . This book teaches you to stop guessing and start aligning your trades with the "big money" moves visible on higher timeframes.
When doing multiple time frame analysis, anchoring VWAP to significant psychological corporate events on higher timeframes provides incredibly powerful support and resistance lines on lower timeframes. Key Events to Anchor VWAP: Earnings release dates All-time highs or multi-year highs Major swing lows (market panic bottoms) Gap-up days with massive relative volume The Three Pillars of Analysis Which way is the market moving
Alternatively, if you want to simply without extra commentary:
Avoid getting shaken out by minor fluctuations.
Lock in profits, tighten stop-losses, and avoid new long entries. Stage 4: The Markdown Phase