To put this into practice, he recommends managing a series of charts simultaneously to see the "big picture" while fine-tuning entries and exits. In an Amazon biography, it's noted that Shannon commonly uses five timeframes at once: a weekly chart, a daily chart, a 30-minute, a 15-minute, and a five-minute chart. This allows him to answer a critical question: When they are aligned, the probability of a successful trade is thought to increase significantly.
Calculating risk based on the distance to the stop-loss rather than a flat dollar amount.
, provides a framework for understanding market structure and identifying low-risk, high-probability trades . His approach centers on the idea that "price is what pays" and focuses on aligning the trends across various time periods to confirm entry and exit points. by brian shannon technical analysis using multiple link
For those looking to deepen their understanding, consider these resources:
Even experienced traders fail at Brian Shannon’s method because they violate the "link" logic. Avoid these three pitfalls: To put this into practice, he recommends managing
Following a downtrend, the price moves sideways as institutional players quietly build positions.
Shannon popularized the use of and 8/21 Exponential Moving Averages (EMAs) across these linked timeframes. For example: Calculating risk based on the distance to the
Brian Shannon is a respected technical analyst, author, and founder of . His primary contribution to the field of trading is the popularization of Anchor Charts and a disciplined approach to trend alignment. His book, Technical Analysis Using Multiple Timeframes , focuses on how traders can reduce risk and increase probability by ensuring they are trading in the direction of the dominant trend.
But what does the phrase mean? While often a typographical variant of "multiple timeframes" or "multiple linked charts," this keyword points to a crucial advanced concept: linking multiple chart timeframes together to create a cohesive, top-down trading strategy.