Identifies the current market phase, chart patterns, and structural shifts.
Exit when the 5-minute trend breaks downwards or the 60-minute chart hits your predetermined profit target. Why Brian Shannon’s Approach is Different
Shannon popularized the Anchored VWAP, which calculates the average price of a stock weighted by volume from a specific starting point (such as an earnings announcement or a major market gap). It provides an objective look at whether the average buyer is currently making or losing money, helping traders spot hidden areas of support and resistance. The Psychology of Trading Identifies the current market phase, chart patterns, and
Multiple Timeframe Analysis (MTFA) is the practice of examining the same asset (stock, forex, commodity) across several different chart intervals (e.g., daily, hourly, 15-minute) before making a trading decision.
Technical Analysis Using Multiple Timeframes by Brian Shannon is widely regarded as a cornerstone text for traders seeking to understand market structure and time their entries with precision. First published in 2008, the book focuses on the "cyclical flow of capital" and teaches traders how to anticipate price movements rather than simply reacting to them. Core Philosophy: The Hierarchy of Timeframes It provides an objective look at whether the
If you're looking for a free PDF of Brian Shannon's book, I couldn't find a legitimate source that offers it for free. However, you may be able to find a preview or summary of the book on websites like Amazon or Goodreads.
This chart establishes the dominant trend and primary direction in which you should be trading. If the long-term trend is up, your goal is to exclusively look for buying opportunities. First published in 2008, the book focuses on
: Shannon is a pioneer in using the Anchored Volume Weighted Average Price to identify the average price participants have paid since a specific event (e.g., a gap or news release). Practical Trading Strategies
A cornerstone concept in Shannon’s work is that accumulation and distribution occur in distinct, repeatable cycles. He divides market action into four specific stages.
Shannon emphasizes that trading with the trend of the higher timeframe drastically increases the probability of a successful trade. Conversely, ignoring the broader context often leads to being caught on the wrong side of sharp market reversals. The Four Stages of the Market Cycle
Moving averages flatten out and price oscillates around them. Price breaks out above the accumulation resistance zone.