Aprende los detalles, los secretos y lo mágico que es tocar, interpretar o crear canciones con este maravilloso instrumento.
Shannon’s approach is grounded in the mantra that . While indicators like RSI or MACD can be helpful, they are derivatives of price. To trade successfully, you must understand the trend alignment across multiple periods [2, 4]. The Four Stages of a Stock Cycle
) to define the trend. He emphasizes that a trend is only valid when the price is consistently trading above its key moving averages (e.g., the 50-day SMAcap S cap M cap A for intermediate trends). B. Price Structure (Support and Resistance)
Never buy a daily chart just because it looks bullish. Zoom in to an intraday chart to find an efficient, tight entry point that keeps your absolute dollar risk low. Shannon’s approach is grounded in the mantra that
The stock moves sideways after a long decline.
Shannon emphasizes that "short-term consolidation areas within primary trend are where we want to study price action for clues to a resumption of momentum." By focusing on these consolidation zones within the context of the larger stage, traders can time their entries with greater precision and lower risk. The Four Stages of a Stock Cycle ) to define the trend
MTFA allows you to recognize when a shorter-term chart is transitioning between these stages before it clearly reflects on a longer-term chart. The Three-Tier Timeframe Framework
Price is above the 200-week moving average. The 8-week EMA is above the 50-week EMA. The anchored VWAP from the yearly low is sloping upward. Bias: Bullish. The trader will only look for buys. Price Structure (Support and Resistance) Never buy a
Traders often fail by looking at the market through a single lens. A setup that looks bullish on a 5-minute chart might be crashing into massive resistance on a daily chart. To solve this blind spot, veteran market technician Brian Shannon popularized a structured approach in his definitive book, "Technical Analysis Using Multiple Timeframes."
Use 3 specific timeframes (in a 1:4 to 1:6 ratio) to form a hierarchical view of the market.
Shannon categorizes time frames into three distinct roles based on your holding period.
