This is your primary anchor chart—often the 60-minute or daily chart—where you look for specific chart patterns, support and resistance levels, and technical setups.
Brian Shannon often repeats a fundamental trading truth: Opinions, predictions, and theories do not make money; managing risk relative to price movement does. The Golden Rules of Risk Management
Shannon stresses that technical analysis is not about predicting the future. Instead, it serves as a tool for managing risk exposure. If the execution timeframe breaks its support level, the trade invalidates immediately, forcing a disciplined exit regardless of the macro thesis. Conclusion This is your primary anchor chart—often the 60-minute
Momentum slows down and the price moves sideways again. Smart money takes profits, and ownership shifts to retail traders. The moving averages flatten out once more.
Used on daily charts to determine institutional bias and overall market health. Instead, it serves as a tool for managing risk exposure
The allows traders to pick a specific starting point on a chart—such as a major earnings release, a historic swing high, or a market bottom—and calculate the volume-weighted average price from that exact moment forward. It acts as a powerful, psychological support/resistance level because it represents the true average cost basis of all market participants since that specific event. 3. Support and Resistance Fractality
The golden rule of MTFA is to . When the micro trend aligns with the macro trend, momentum accelerates. Smart money takes profits, and ownership shifts to
Brian Shannon’s foundational book, Technical Analysis Using Multiple Timeframes , provides a definitive framework for resolving these contradictions. It explains how market trends interact across various periods to help traders make high-probability decisions. The Core Philosophy: Multiple Timeframe Analysis (MTFA)
[1. Identify Trend] --> [2. Locate Pullback] --> [3. Execute Entry] Higher Timeframe Intermediate Chart Lower Timeframe Step 1: Define the Trend (Higher Timeframe)
Executing the Multi-Timeframe Trading Strategy: Step-by-Step
The stock must be in a Stage 2 Markup phase. The 20-day and 50-day moving averages must be sloping upwards, with the current price trading above them. Step 2: Analyze the 60-Minute Chart (The Setup) Goal: Find an attractive risk-reward entry zone.
