Price moves sideways; supply is absorbed.
Look back at your Daily chart. Set your profit targets just below the next major structural resistance level or historical high. 5. The Pitfalls of "Free PDF Download" Mentality
Shannon categorizes every stock's lifecycle into four phases:
By viewing multiple time frames simultaneously, you gain situational awareness. You avoid the classic trap of buying a breakout on a 5-minute chart right as the price hits major, immovable resistance on a Daily chart. 2. Core Concepts from Brian Shannon’s Philosophy Price moves sideways; supply is absorbed
: Refines the current trend and identifies significant levels for swing trading.
Happy trading – and always respect the higher timeframe.
Mastering multiple time frame analysis will immediately improve your win rate by filtering out low-probability setups. Brian Shannon’s method is practical, not academic—it works in real markets. Buy the book to access his exact charts, examples, and advanced concepts like “pivots in time” and “layering.” Stage 2: Markup
Wait for confirmation:
Look for:
15-minute or 5-minute chart to spot intraday patterns. immovable resistance on a Daily chart.
The Definitive Guide to Multiple Time Frame Analysis: Trading with the Trend
After a prolonged decline, an asset stops making lower lows and begins moving sideways. Volume typically dries up as sellers lose momentum and smart money begins quietly buying shares. The price oscillates around a flat moving average. Stage 2: Markup