Shannon advocates for a clean chart, relying primarily on price action, volume, and moving averages.
Brian Shannon’s approach proves that technical analysis is not about predicting the future; it is about managing risk and reading the current environment objectively. By integrating multiple timeframes into your routine, you stop guessing where the market is going and start aligning your capital with the real forces of supply and demand.
Used to identify the long-term direction and major support or resistance levels. Intermediate Trend (Daily Chart): Shannon advocates for a clean chart, relying primarily
This timeframe establishes the macro trend. If you are a swing trader, your anchor is usually the daily chart. If the daily chart is in a Phase 4 markdown, you should not look for long setups on smaller charts. 2. The Execution Timeframe (The Setup)
What is your ? (e.g., Day trading, Swing trading) What indicators do you currently use? Used to identify the long-term direction and major
This helps identify the current swing within the larger trend.
The asset moves sideways in a range after a long downtrend. If the daily chart is in a Phase
MTFA is the process of viewing the same asset under different time compressions. Shannon’s book outlines a specific hierarchy for this:
Prices consistently hold above a rising 20-day and 50-day moving average.
– The price breaks down from the distribution phase, entering a downtrend marked by lower highs and lower lows. Other Essential Features
Open a Weekly/Daily chart to identify the trend direction.