Technical Analysis — Using Multiple Timeframes Brian Shannon

VWAP is Shannon's primary indicator because it accounts for both price and volume simultaneously. He refers to it as the "Institutional Truth" because it represents the true average price at which a stock has traded during a specific session.

This is your execution window. You look for a low-risk entry point, such as a breakout of a small consolidation, that aligns with the 65-minute and Daily trends. 🛡️ Risk Management and Price Memory technical analysis using multiple timeframes brian shannon

For instance, a trader analyzing a daily chart may identify a bullish trend, but fail to notice a larger bearish trend unfolding on the weekly chart. Conversely, an investor analyzing a weekly chart may identify a long-term bullish trend, but overlook a short-term bearish pattern on the daily chart. By focusing on a single timeframe, traders and investors may miss critical information that can impact their trading decisions. VWAP is Shannon's primary indicator because it accounts

One of the highest-probability setups described in Shannon’s work is the confluence of trend alignment and VWAP retests. Here is a step-by-step guide: You look for a low-risk entry point, such

Wait for the lower timeframe to confirm the move on the higher timeframe. For instance, if the daily chart shows a pullback to the 50-day MA, look for a "higher low" or a "breakout" on the 60-minute chart 1.2.2. 5. Summary of Benefits

This identifies the current trend. (e.g., Daily chart)