He also watches for —a signal often marked by a “Rev” label when short‑term momentum crosses intermediate momentum. This isn’t a signal to reverse position; it’s a signal to take partial profits or tighten your stop loss immediately.
This sets the context. (e.g., Weekly chart)
: The longer-term chart (Weekly/Daily) defines the "overall market direction," while shorter charts (Intraday) fine-tune timing. The Golden Rule technical analysis using multiple timeframes brian shannon
Brian Shannon , a renowned technical analyst, educator, and author of Technical Analysis Using Multiple Timeframes , has popularized a structured approach to this method. His philosophy focuses on finding the confluence of trend, momentum, and volume across different chart durations to increase trade probability.
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. He also watches for —a signal often marked
This psychological discipline separates successful traders from gamblers. The market doesn’t care what you think should happen. Your job is to , not anticipate.
Brian Shannon popularized the highly effective use of the , specifically Anchored VWAP (AVWAP) , alongside standard moving averages. VWAP is Shannon's primary indicator because it accounts
Technical Analysis Using Multiple Timeframes : Brian Shannon
Mastering the Market: Technical Analysis Using Multiple Timeframes by Brian Shannon
Introduction to Multiple Timeframe Analysis Technical analysis often fails when traders look at a single chart in isolation. A breakout on a 5-minute chart might look like a perfect buying opportunity, only to immediately fail because it ran directly into a major resistance level on the daily chart.