Brian Shannon’s methodology focuses on aligning multiple timeframes—from weekly to 5-minute charts—to identify market trends, relying on the philosophy that "price pays" and prioritizing risk management. The approach emphasizes identifying four market stages (Accumulation, Markup, Distribution, Markdown) and utilizing the Anchored VWAP to confirm trend sustainability and precise entry points. For a deeper look into his techniques, visit Alphatrends.
Consider a trader evaluating a stock, XYZ Corp. The weekly chart shows price above the 50 EMA and above an anchored VWAP from the 52-week low—a bullish higher timeframe. The daily chart pulls back to the 21 EMA on decreasing volume. The trader places the stock on a watchlist. The next day, the 4-hour chart stabilizes at the anchored VWAP and prints a bullish hammer candle. The lower timeframe (15-minute) then breaks a small downtrend line with a surge in volume. The trader enters long. The stop loss is placed just below the anchored VWAP on the 4-hour chart (logical, structural support). The target is the next anchored VWAP resistance level from the prior high. Every decision—trend, entry, stop, target—is derived from a specific timeframe. There is no guesswork. technical analysis using multiple timeframes brian shannon
Higher Timeframe (Weekly/Daily): Used to identify the dominant trend and major support or resistance zones. Volume analysis
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