Offers the precise timing for entries and exits.
In Shannon’s trading system, VWAP serves as the on intraday timeframes. The rule is straightforward: you don’t buy until price reclaims VWAP while the intermediate trend is bullish. You don’t short until price loses VWAP while the intermediate trend is bearish.
The goal of MTF analysis isn’t to find perfect alignment on every single chart—that rarely happens. Instead, it’s to , then use shorter timeframes for precise execution, and always respect the direction of the larger trend.
| Hour | Price | | --- | --- | | 9:00 | $98 | | 10:00 | $99 | | 11:00 | $100 | | 12:00 | $101 | technical analysis using multiple timeframes brian shannon
: The downtrend phase where sellers dominate. Traders should focus on shorting or staying in cash. 3. Strategic Analysis Tools
: Used for fine-tuning entries and managing risk with precision. The Four Stages of the Market Cycle
Institutional buyers quietly build positions without driving the price up significantly. Offers the precise timing for entries and exits
Never take a long day-trade or swing-trade on a 5-minute breakout if the daily chart is in a structural Stage 4 markdown. The macro trend will almost always crush the micro setup.
Multiple timeframe analysis is the practice of viewing the same asset across different time compressions. Brian Shannon’s framework relies on a top-down approach:
AVWAP calculates the true average price paid for an asset based on volume since that specific event. If the price is above the AVWAP anchored to a major low, buyers since that event are in control and in a profitable position, making that line a powerful psychological support level. 5. Step-by-Step Execution Framework You don’t short until price loses VWAP while
: Pinpoints localized intraday execution, allowing for exact entry triggers and risk minimization.
Identifies key support and resistance zones, chart patterns, and localized trends. Charts Used: 60-minute or 10-minute charts.
These are not just lines, but "zones" where supply and demand are likely to shift, identified on higher timeframes.
One of Shannon’s most powerful contributions is his framework—a visual way to classify whether an asset is in accumulation, markup, distribution, or decline. This system helps you quickly determine what type of trade setup to look for and, just as importantly, when to stay in cash.
