A sustained downtrend where the asset loses value as participants exit.

Look at the 5-minute or 15-minute chart. Wait for an intraday breakout above a declining trendline or a clearing of the morning high.

Open the daily chart. Check if the price is above a rising 20-day and 50-day moving average.

You enter long at $101.60. The Stop Loss: Below the recent 15-minute swing low ($100.90). The Target: The previous high on the linked 60-minute chart ($105.00).

Avoid trading against the dominant market force.

Relying on slow indicators that conflict across timeframes. Rely heavily on price action, volume, and moving averages. Conclusion: The Power of Multi-Timeframe Confluence

: Sideways movement where big players build positions after a downtrend.

Determining the path of least resistance using longer-term charts (e.g., Daily or Weekly).

Rather than chasing lagging technical indicators, Shannon's approach acts as a practical blueprint for reading the "collective psychology" of the market to discover high-probability setups. The Core Philosophy: Multi-Timeframe Alignment

Defines the overall direction of the market (uptrend, downtrend, or sideways).

: Sideways movement at the top as institutions sell into the remaining demand.

Switch to the 65-minute chart. Look for the short-term downtrend of the pullback to break or form a constructive base (a mini Stage 1 accumulation).

Captures the short-term swing trading trend. The EMA reacts quicker to recent price changes, making it ideal for tracking immediate momentum.

, a tool that tracks the average price paid by market participants starting from a specific event, such as an earnings report or a major swing low. Brian Shannon | Technical Analysis and Chart Reviews 16 Feb 2024 —

Brian Shannon is a respected technical analyst, author, and founder of . His primary contribution to the field of trading is the popularization of Anchor Charts and a disciplined approach to trend alignment. His book, Technical Analysis Using Multiple Timeframes , focuses on how traders can reduce risk and increase probability by ensuring they are trading in the direction of the dominant trend.

Shannon advocates for a "no-nonsense" approach that focuses on price as the ultimate indicator. However, several specific tools are central to his Alphatrends methodology: Amazon.com: Technical Analysis Using Multiple Timeframes

In , Brian Shannon introduces a structured approach using different levels of chart magnification: