, provides a systematic framework for understanding market structure through the lens of price, time, and volume. By analyzing a security across various time horizons, Shannon teaches traders to align with dominant trends while using shorter-term charts for high-precision, low-risk entries. The Core Framework: The Four Stages of Market Cycles
Every trade begins with an assessment of the big picture. A typical starting point is to examine the highest timeframe (e.g., the weekly or daily chart) to determine the dominant market stage.
The chart shows sideways movement with increased volatility. Stage 4: Decline by brian shannon technical analysis using multiple link
+-------------------------------------------------------+ | WEEKLY / DAILY CHART | | [Telescope] Identifies Major Trend & Market Stage | +---------------------------+---------------------------+ | v +-------------------------------------------------------+ | 30-MINUTE / 65-MINUTE CHART | | [Bridge] Locates Recent Pullbacks & Moving Averages | +---------------------------+---------------------------+ | v +-------------------------------------------------------+ | 5-MINUTE / 1-MINUTE CHART | | [Microscope] Pinpoints Absolute Execution & Triggers | +-------------------------------------------------------+
Pinpointing low-risk, high-reward entry and exit points using shorter-term charts (e.g., 65-minute, 15-minute, or 5-minute). , provides a systematic framework for understanding market
Used to identify the primary trend and major support or resistance levels.
: Typically a 65-minute, 30-minute, or 5-minute chart. Traders zoom in here to optimize entries, manage active stop-losses, and reduce adverse price movement upon trade initiation. A typical starting point is to examine the
Rather than relying on a single view, Shannon’s approach uses multiple timeframes to "stack the odds" in your favor. Each serves a specific purpose:
Acts as a telescope to identify the dominant structural trend, primary support/resistance zones, and market cycle stages.
Clear uptrend marked by higher highs and higher lows. The asset trades consistently above its rising 20-day and 50-day moving averages. Stage 3: Distribution
To put this technical analysis framework into practice, Shannon suggests organizing your charting layout hierarchically. If you are a swing trader (holding stocks for 2 to 20 days), your routine setup should look like this: 1. The Daily Chart (The Compass) Establishes the market structure and major trend. Indicators: 20-day EMA, 50-day SMA, 200-day SMA.