Top | Technical Analysis Using Multiple Timeframes By Brian Shannon Pdf [upd] Free 57
: Used to confirm the health of a trend; ideally, advances occur on increasing volume and pullbacks on declining volume.
: The balance of power shifts decisively to the buyers. The accumulated shares lead to a sustained uptrend characterized by a series of higher highs and higher lows. Demand exceeds supply. Strategy : "Participate Long / Avoid Short." This is the trend trader's paradise. The path of least resistance is higher. Traders should be aggressively looking for long opportunities on pullbacks within this primary uptrend.
Many traders use three specific periods—long-term (daily/weekly) for trend direction, intermediate (hourly) for context, and short-term (5-minute/15-minute) for execution.
Side-ways movement after a big run, often with increased volatility as investors exit.
The daily chart reveals the "operational" trend. It is on this timeframe that traders define the tactical plan. Is the daily chart confirming the bullish signal of the weekly, or is it showing weakness? The ideal setup for a long trade occurs when the weekly chart is in Stage 2 and the daily chart is pulling back to a critical support level or key moving average within that uptrend. : Used to confirm the health of a
– A sustained upward trend characterized by higher highs and higher lows.
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Pinpoints the exact entry price to minimize risk and maximize risk-to-reward ratios.
– The stock bottoms out and moves sideways as buyers quietly build positions. Demand exceeds supply
The methodology centers on a "top-down" approach to ensure short-term trades are in harmony with long-term market structure:
What do you trade most often? (e.g., stocks, crypto, forex)
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Never trade against the primary trend identified on this chart. If the daily chart is in a Stage 4 markdown, do not look for intraday buy setups. 2. The Intermediate Timeframe (The Setup) Timeframes: 65-minute, 30-minute, or 15-minute charts. A clear uptrend forms
— Brian Shannon
– The momentum stalls and the stock moves sideways as institutional sellers unload shares.
A clear uptrend forms, characterized by higher highs and higher lows.