AGENDA
Common setups and examples (conceptual)
Shannon defines three core timeframes for most traders (active to intermediate swing traders): technical analysis using multiple timeframes brian shannon
A cornerstone of Shannon's philosophy is that all markets move through four distinct phases: The daily chart answers the question: Is the
: Used for primary trend identification and finding major support/resistance levels. Brian Shannon argues that this is like navigating
Beyond timeframes, Shannon is a pioneer in using to identify "hidden" levels of interest where participants are likely to act. He also relies on the 5-day moving average to gauge intermediate-term trends, typically avoiding shorting above it or buying below it.
The daily chart answers the question: Is the current pullback healthy or broken?
Most traders are linear thinkers. They look at a daily chart and see an uptrend, so they buy. Brian Shannon argues that this is like navigating a cross-country road trip using only a satellite image of the Earth. It gives you the big picture but misses the potholes, gas stations, and traffic jams.
