Technical Analysis Using Multiple Time Frame By Brian Shannon.pdf New! -
Move to a daily or 60-minute chart. Ask: Is the intermediate trend moving in the same direction as the primary trend? If both are pointing up, the stock is in a high-probability environment for long trades.
In this post, we break down the key takeaways from the book and explain how using multiple timeframes can transform your trading from gambling to a structured business.
Shannon dedicates significant space to what he calls "MTF Violations." Move to a daily or 60-minute chart
Brian Shannon's "Technical Analysis Using Multiple Timeframes" provides a structured, top-down approach to trading by aligning long-term trends with short-term entry and exit signals. The guide emphasizes market psychology, the four stages of market cycles, and the use of Anchored VWAP to analyze volume-weighted price action. You can find more information about this book through various financial education platforms.
Brian Shannon’s "Technical Analysis Using Multiple Timeframes" offers a framework for market analysis by aligning trends across different time horizons to improve trade success and risk management. The methodology utilizes a top-down approach, tracking market cycles through accumulation, markup, distribution, and decline, often leveraging Anchored VWAP (AVWAP) for identifying significant support and resistance. For a detailed review, see the analysis at Seeking Alpha . Amazon.com: Technical Analysis Using Multiple Timeframes In this post, we break down the key
"It tells us factually who's in control from any point in time," Shannon explained. "The market is anchored to that key event, be it the CPI or earnings reports or important highs and lows."
Shannon refers to VWAP as the only indicator providing the "Source of Truth" by accounting for both price and volume, representing the average price institutions paid for their positions. It serves as dynamic support/resistance, helps identify whether institutional traders are in profit or loss, and guides precise entries when price reclaims VWAP on volume. You can find more information about this book
Shannon provides several practical examples of how to apply multiple time frame analysis in trading, including:
While many traders discuss MTF in passing, few have broken it down as clearly as Brian Shannon in his classic book, Technical Analysis Using Multiple Time Frames . For over a decade, this PDF (now widely shared and studied) has been a cornerstone for price-action traders looking to align trend, momentum, and entries.
As Shannon puts it: "Some stocks you'll look at and the longer-term trend is down, but the last couple of days it's up. It's just a mess basically, there's no consistency of trend here." This is why context matters—the lower timeframe must never override the higher timeframe's direction. A bullish setup on a short-term chart may simply be a countertrend bounce if the larger trend is still down.