Used to identify specific trade setups and confirm market cycles. Lower Timeframes (15-minute/5-minute):
Scan for a stock in a clear Stage 2 uptrend on the daily chart that is currently experiencing a short-term pullback toward a rising 20-day EMA.
To put this methodology into practice, follow this top-down sequence: Step 1: Scan the Anchor Chart Used to identify specific trade setups and confirm
In the world of technical analysis, trading a single time frame is like looking at a busy intersection through a straw. You can see the cars directly in front of you, but you have no idea if a massive truck is speeding toward the intersection from just outside your view.
One of Shannon’s most memorable analogies: You can see the cars directly in front
Price breaks down; time to sell or go short. 2. Support and Resistance
Understanding Multiple Time Frame Analysis: The Brian Shannon Methodology Used to identify specific trade setups and confirm
To implement this technical framework successfully, follow this structured top-down progression before risking any capital. Step 1: Define the Macro Trend (Daily Chart)
Move to the 5-minute chart. Wait for price to break out of the short-term declining trendline of that bull flag. Look for a surge in volume to confirm that buyers are stepping back in. Step 4: Define Your Risk (The Stop-Loss)