: Higher highs and higher lows. The price stays consistently above rising moving averages.
What is your (Day trading, Swing trading, Long-term investing)? Which technical indicators do you currently use the most? Share public link
: Stand aside or buy near the clear support floor; avoid aggressive positioning. Stage 2: The Markup Phase
A tool Shannon pioneered to track the average price since a specific event (e.g., earnings, IPO, or a major low). It serves as a dynamic support or resistance level. Seeking Alpha Risk Management Principles Shannon famously states that risk management is : Higher highs and higher lows
To implement Brian Shannon’s strategy effectively, a trader must follow a top-down approach. Here is how a standard swing trading operation is structured:
This chart optimizes entry and exit points, minimizing slippage and allowing for tight stop-loss placement. The 5-minute or 1-minute chart serves this purpose.
Brian Shannon’s approach rests on a fundamental market truth: A stock might look bearish on a 15-minute chart, but that decline could simply be a minor pullback within a massive, bullish weekly trend. Which technical indicators do you currently use the most
To download Brian Shannon's PDF guide on technical analysis using multiple time frames, click on the following link: [insert link]
Used for trend identification and spotting major support and resistance zones.
Bridges the gap between long-term structure and intraday execution. It serves as a dynamic support or resistance level
Shannon advocates for a top-down analysis approach using three primary chart horizons: 1. The Macro Trend (Weekly & Daily Charts) Determines the overarching direction of the asset. Identifies major support and resistance zones.
pinpoints exact entry signals, risk parameters, and stop-loss placements.
Here are some key takeaways from Shannon's approach:
is the , which provides a framework for understanding the cyclical flow of capital through all markets. The Four Stages of Market Cycles
Support breaks, and the asset begins a severe downtrend characterized by lower highs and lower lows. Moving averages slope downward and act as dynamic resistance. Short sellers look to lower timeframes to time entries on temporary relief rallies that fail at overhead resistance. Step-by-Step Execution Strategy Using Three Timeframes