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Brian Shannon’s "Technical Analysis Using Multiple Timeframes" (2008) provides a foundational framework for traders to align short-term execution with broader market trends, focusing on price action over rigid indicators. The methodology emphasizes a top-down approach utilizing anchored VWAP, the four market stages, and strict risk management to enhance trade precision. Purchase the book on Amazon .
Trigger pull. Toolbox: Candlestick patterns (pin bars, engulfing), volume spikes, and stochastic crossovers. Action: Enter only when the lower timeframe shows a reversal pattern in the same direction as the higher timeframe. --- Technical Analysis Using Multiple Timeframes By Brian
This alignment creates And conviction is what allows you to hold a trade through a 2% retracement without vomiting.
This article unpacks Brian’s comprehensive guide to —a strategy that transforms chaotic price action into a clear, actionable roadmap.
Open your Daily or Weekly chart. Ask yourself one question: Start here
Price gaps up but is now sitting near the upper Bollinger Band. Brian does not buy here. He marks a "Discount Zone" using the Fibonacci retracement from last week’s low to today’s high. He sets his limit orders near the .
"Trade in the direction of the higher timeframe, but enter on the lower timeframe."
As Brian summarizes in his legendary trading course: "The daily chart is the sky. The 4-hour chart is the weather. The 15-minute chart is the wind. You do not build a house based on the wind. You build it based on the sky, protect it from the weather, and adjust the sails for the wind." For financial advice, consult a professional
If the medium timeframe disagrees with the higher timeframe (e.g., higher timeframe is up, but medium is in a steep decline), do nothing. Wait for alignment.
"Always trade in alignment with the higher timeframe trend, but execute using the lower timeframe precision."