Brian Shannon's multiple timeframe approach to technical analysis offers a powerful tool for traders and investors seeking to gain a more comprehensive understanding of market trends and patterns. By analyzing multiple timeframes, traders and investors can improve their trend identification, enhance their trading decisions, and better manage risk. Whether you are a short-term trader or a long-term investor, incorporating multiple timeframe analysis into your technical analysis toolkit can help you navigate the complexities of the financial markets with greater confidence and success.

Shannon uses specific signals to automate this logic: an —that’s the long trigger. An “S” label appears when price loses VWAP with bearish intermediate trend —that’s the short trigger.

Find a stock in that sector.

VWAP calculates the average price an asset has traded at throughout the day, based on both volume and price. Shannon pioneered the use of . By anchoring VWAP to a specific significant event—such as an earnings report, a market low, or a major gap—you can see the true average cost basis of buyers from that exact moment in time. 5. Step-by-Step Execution: The Top-Down Approach

Note: Shannon frequently utilizes the 65-minute chart because exactly six 65-minute candles fit perfectly into a standard 390-minute U.S. stock market trading day, eliminating the uneven "partial candle" produced by the standard 60-minute chart. The Day Trader's Matrix

Shannon’s methodology isn’t about complex indicators or crystal balls. It is about . Here is a breakdown of how to apply his specific approach to Multiple Timeframe Analysis (MTFA) to find high-probability trades.

Wait for the asset to pull back to the support zone identified in Step 2. On the 65-minute chart, look for a sign that selling pressure is ending—such as a bullish engulfing candle, a double bottom, or a break above a short-term descending trendline. Step 4: Execute with Strict Risk Control

Brian Shannon , CMT, is a renowned equity trader and the founder of Alphatrends

The benchmark for intermediate-term institutional support.

The asset breaks below the support of the Stage 3 distribution phase. It begins making lower highs and lower lows. Moving averages slope downward, acting as overhead resistance during temporary relief rallies. This is the environment for short-selling or holding cash. 3. Selecting Your Timeframe Triads

VWAP represents the , weighted by volume. Unlike a simple moving average, which treats every price equally, VWAP accounts for where the real liquidity has been transacted. As Shannon describes it, VWAP is the one indicator that provides the “Source of Truth” by incorporating both price and volume.

Here is a practical, step-by-step approach to applying Brian Shannon’s multiple timeframe strategy: Step 1: Start High (Daily/Weekly Chart)