A perfect buy signal on a 5-minute chart will almost always fail if the daily chart is deep in a Stage 4 Markdown phase. The larger trend rules.
: Used for long-term trend identification and finding major support/resistance levels. Daily Chart
Shorter timeframes are filled with random price fluctuations. Higher timeframes provide clarity on the dominant market direction.
The 5‑day MA represents . When price is above it with a green fill, it signals bullish short‑term momentum; when price is below it with a red fill, bearish pressure dominates. Shannon uses the 5‑day MA as a dynamic support/resistance for timing entries, especially when price pulls back to it during a larger uptrend. A perfect buy signal on a 5-minute chart
“Don’t let what the market is doing keep you away from a great individual setup.” – Brian Shannon
Brian Shannon’s method teaches that you are not trying to predict which way the wind will blow, but simply to read the current direction of the stream at all levels—from the gentle flow of the eddy to the powerful surge of the current. By aligning your trades with the dominant trends on higher timeframes and using the precision of lower charts and the objective value levels of the AVWAP, you move beyond guesswork and into a world of high-probability, structured analysis.
Implementing Shannon´s method requires a disciplined, step-by-step process: Daily Chart Shorter timeframes are filled with random
Price breaks below the distribution support, making lower highs and lower lows. Moving averages slope downward and act as overhead resistance.
: This is the ripple. It provides the precision execution needed to minimize risk and maximize gain. 🔍 The Secret of the Anchored VWAP
: Used for precise trade execution, managing risk, and spotting short-term signals. The Four Stages of Market Cycles When price is above it with a green
A PDF copy of can be found via the following link:
Here is the link to the pdf https://www.pdfdrive.com/technical-analysis-using-multiple-time-frames-by-brian-shannon-pdf-d160230.html
: Shannon is a pioneer in using VWAP anchored to specific events (like earnings or gaps) to find "true" support and resistance. Volume Analysis