Technical Analysis Using Multiple Timeframes Brian Shannon

While multiple timeframes provide the structure, Shannon relies on specific tools to identify "institutional truth."

, is built on the philosophy that price action is the only "truth" in the market. By viewing a single asset through different "levels of magnification," traders can align short-term entries with long-term trends to maximize probability and minimize risk. 1. The Core Philosophy: Alignment of Interests

Look at the higher timeframe to identify the next major structural resistance level (such as a previous peak or a descending higher-timeframe moving average) to set your profit targets. 6. Common Pitfalls to Avoid technical analysis using multiple timeframes brian shannon

Brian Shannon’s methodology relies heavily on specific moving averages to define dynamic support and resistance across timeframes. The Essential Moving Averages On a daily chart, three moving averages are paramount:

While conventional VWAP resets daily, allows you to start the calculation from a significant point (e.g., an important low, an earnings gap, a swing high). Shannon uses AVWAP across timeframes: The Core Philosophy: Alignment of Interests Look at

Shannon is a staunch advocate for pure Price Action. He warns against "indicator clutter"—filling your charts with MACDs, RSI, and moving averages until you can’t see the candles.

AI responses may include mistakes. For financial advice, consult a professional. Learn more Share public link The Essential Moving Averages On a daily chart,

This is your anchor. This chart tells you the "weather." Are we in a bull market or a bear market?

A specific tool Shannon highlights is the 5-day moving average. He views this as the line representing the short-term sentiment of market participants.

This paradox is why Brian Shannon, founder of Alphatrends and author of Technical Analysis Using Multiple Timeframes , argues that looking at a single chart is like driving a car with the windshield painted black—you can see the speedometer, but you have no idea where the road is going.

Shannon’s core philosophy is elegantly simple but profoundly effective: price action viewed across different magnification levels reveals the full story the market is trying to tell.