He also watches for —a signal often marked by a “Rev” label when short‑term momentum crosses intermediate momentum. This isn’t a signal to reverse position; it’s a signal to take partial profits or tighten your stop loss immediately.
: The price stays below declining moving averages.
By checking higher timeframes for structural direction and Drilling down to lower intervals for execution, traders filter out unnecessary market noise while protecting capital. How to use Multi-Time Frame Analysis in trading - Dhan technical analysis using multiple timeframes brian shannon
By learning to read these stories simultaneously—by understanding that you must start with the outer timeframes (the tide) and move inward to the inner timeframes (the ripple)—you stop reacting to price and start anticipating it.
Using multiple timeframes, as advocated by Brian Shannon, can significantly enhance your technical analysis and trading decisions. By analyzing charts across different timeframes, you can confirm trends, identify patterns, and improve trade timing. Remember to choose timeframes that align with your trading goals and market analysis, and always use proper risk management techniques. He also watches for —a signal often marked
The 15‑minute chart shows a breakout, but the 60‑minute and daily charts are both neutral or bearish. You enter anyway because the signal was “so clear” on the lower timeframe.
To solve this problem, legendary trader and market analyst Brian Shannon popularized a structured approach to analyzing the market: . In his seminal book, "Technical Analysis Using Multiple Timeframes," Shannon outlines a comprehensive framework that helps traders align market trends, manage risk, and execute high-probability trades by looking at the market through different lenses. By checking higher timeframes for structural direction and
Look for a low-risk setup. Is the asset pulling back to a flat or rising moving average? Is it building a clean consolidation base? Identify the exact price level where sellers are losing control.
Switch to your trading timeframe (e.g., 15‑minute or 30‑minute for swing trading). Do enter simply because the ribbon is green. Wait for a pullback toward VWAP , followed by a reclaim of that VWAP level. This pullback‑and‑reclaim pattern is the entry trigger.
Shannon is a pioneer in the use of the Anchored Volume Weighted Average Price (AVWAP), which he covers extensively in his subsequent work, Maximum Trading Gains with Anchored VWAP .