Because you are trading in the direction of the daily trend, your potential profit target is governed by the larger chart, leading to highly favorable risk-to-reward ratios (e.g., 1:3 or 1:4).
Identify minor consolidation patterns (like flags, pennies, or flat tops) that indicate the pullback is ending. Step 3: Trigger the Entry (The 5-Minute or 15-Minute Chart)
: Shannon places particular emphasis on the 5-day moving average as representing short-term sentiment. However, he stresses never using any indicator in isolation—always combine with longer timeframe analysis and look for volume expansion on moves away from moving averages. Because you are trading in the direction of
Multi-Timeframe Analysis (MTA) involves evaluating the exact same financial asset across different chart intervals to eliminate market noise and discover structural harmony.
The benefits of technical analysis using multiple timeframes include: However, he stresses never using any indicator in
In 2025 and beyond, portability is king. Traders are no longer chained to a desktop rig in a home office. A powerful, lightweight has become the preferred weapon of choice for the modern technical analyst.
For those who are still skeptical about why this book remains relevant 15+ years after its initial release, consider the psychological edge it provides. Traders are no longer chained to a desktop
Brian Shannon is a professional trader with decades of experience, founder of , and co-host of the popular AlphaTrends Live trading show. His book distills years of practical screen time into a systematic approach to trend analysis. Unlike purely theoretical authors, Shannon focuses on price action, anchored VWAP (Volume-Weighted Average Price), and multiple timeframe alignment .