Favored by Shannon because it divides the 6.5-hour trading day into six equal periods, unlike the standard hourly chart. Key Concepts and Tools
, provides a framework for understanding market structure and identifying low-risk, high-probability trades . His approach centers on the idea that "price is what pays" and focuses on aligning the trends across various time periods to confirm entry and exit points. by brian shannon technical analysis using multiple link
– The "avoid" or "short" phase, characterized by a downtrend of lower highs and lower lows. 2. The Power of Three: Aligning Your Charts Favored by Shannon because it divides the 6
The magic of Brian Shannon’s technique is that these links are not independent. They are via Fibonacci relationships and volume profiles. If the links are broken (e.g., buying a 15-minute breakout against a weekly downtrend), the chain breaks. – The "avoid" or "short" phase, characterized by
Beyond indicators and charts, Shannon’s philosophy emphasizes strict risk management and psychology, both of which are enhanced by his multi-timeframe approach. By using shorter timeframes for execution, traders can place tighter stop-loss orders just outside of intraday support or resistance levels. This minimizes the amount of capital at risk on any single trade while still allowing the trader to participate in a larger daily or weekly trend. This creates highly favorable risk-to-reward ratios, which Shannon argue is the ultimate key to long-term profitability in the markets. In summary, the methodology presented in Technical Analysis Using Multiple Timeframes