Technical Analysis Using Multiple Time Frame By Brian Shannon Online
You cannot know where a stock is going tomorrow (lower TF) if you don't know where it is standing relative to the tide (higher TF).
Shannon argues that fighting the daily trend is the fastest way to bankruptcy. If the Daily chart is below the 200-period moving average and making lower lows, your job is not to buy the dip on the 5-minute chart.
Enter . In his landmark book, Technical Analysis Using Multiple Time Frames , Shannon doesn't just teach you indicators; he teaches you how to align the "wind" of the higher time frames with the "rudder" of the lower time frames.
In Shannon’s methodology, if price is above VWAP on the Daily chart, the bulls are in control. If price retests that VWAP on the 60-minute chart and bounces, that is a "Shannon-approved" high-probability entry. Anchor VWAP to a significant event—the day of earnings, the day of a Fed announcement, or the start of a major breakout. Watch how price respects that level for weeks to come. The Cardinal Sin: Over-optimizing One of the best warnings Shannon gives is about "analysis paralysis." You cannot know where a stock is going
Here is how to apply his logic to stop guessing and start trading with institutional precision. Shannon’s primary argument is simple yet profound: Every significant move on a lower time frame begins as a ripple on a higher time frame.
Traders often load their charts with 7 indicators, 4 time frames, and 3 oscillators. They become so confused by conflicting signals that they miss the move entirely.
Have you read Brian Shannon’s book? What is your go-to combination of time frames? Let me know in the comments below! If price retests that VWAP on the 60-minute
Once the Daily is bullish and the 60-minute is at support, you drop to the 15-minute chart to look for . You are looking for a "reversal of the pullback"—specifically, a higher low or a bullish moving average crossover.
This is Shannon’s secret sauce. Most retail traders jump from the Daily straight to the 1-minute chart. That is a mistake. The 60-minute chart filters out the "noise" of the 1-minute chart but reacts faster than the Daily.
The "VWAP" Anchoring Technique Brian Shannon is arguably the world's leading expert on Anchored VWAP (Volume Weighted Average Price). Unlike a simple moving average, VWAP shows you where "fair value" is based on actual trading volume. You reduce the noise
You cannot escape the gravity of the higher time frame.
Most traders lose money not because they are bad at reading charts, but because they are looking at the wrong chart.
Only take long signals on the lower time frames if the Daily chart is in an uptrend (higher highs/lows or above key VWAP/EMAs). 2. The Intermediate Time Frame (The Value Zone) Time Frame: 60-minute (Hourly) Chart Question to answer: Where is the low-risk entry?
By waiting for alignment—trend, value, and trigger—you stop trading like a gambler and start trading like a sponsor. You reduce the noise, increase your probability, and finally understand why you are in the trade.