This psychological focus is what sets Technical Analysis Using Multiple Timeframes apart. His approach is methodical and systematic, not based on guesswork or chasing hot tips. It is a that prioritizes objectivity, risk management, and a deep understanding of market structure.
Never fight the trend of the higher timeframe. If the daily chart is in Stage 4 (Markdown), a "buy signal" on a 5-minute chart is likely a trap [2, 4]. Anchored VWAP: The Shannon Signature
If you're looking to move beyond guessing and start trading with a clear, structured plan, Technical Analysis Using Multiple Timeframes is a highly worthwhile investment.
On your chosen entry timeframe (e.g., 15-minute or 30-minute), wait for price to pull back toward the AVWAP line. An entry signal is generated when price reclaims the AVWAP while higher timeframes remain bullish. Shannon stresses: "Do not buy at the absolute bottom. Wait for the ribbon to turn and the VWAP to be reclaimed. Better to buy higher with confirmation than lower with hope." This psychological focus is what sets Technical Analysis
A critical rule is that a bullish signal on a lower timeframe does not override a bearish trend on a higher timeframe. The goal is to find , where all three timeframes are pointing in the same direction, which provides a high-probability setup.
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Zoom into the 15-minute or 5-minute chart to find the precise moment to buy. Never fight the trend of the higher timeframe
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With the four stages in mind, we can now apply Shannon's multi-timeframe method. His personal trading setup includes a , allowing him "to see five time-frames at once" and observe "the interplay of bigger trends with shorter-term timeframe trends."
If the price is above an AVWAP anchored to a major low on a daily chart, the bulls hold institutional control. When price tests that same AVWAP level on a 15-minute chart, it presents a highly localized, low-risk buying opportunity. 4. The 4 Stages of the Market Cycle On your chosen entry timeframe (e
Enter the trade immediately as price clears the intraday trigger.
to ensure you do not trade against the smart money.
Next, John switched to the 4-hour chart to get a better sense of the market's short-term structure. He noticed that the index had been consolidating in a narrow range over the past few days, with a series of small-bodied candles indicating indecision.