By Brian Shannon Technical Analysis Using Multiple Link !!better!! Guide
Stop analyzing single charts in isolation. Start linking your time frames. As Shannon writes in the final chapter of his book: "The trend is your friend, but the time frame is your map. Without the map, the friend will lead you off a cliff."
Used to identify the major trend and primary support/resistance levels.
But when I "zoomed out" to the , I saw a different story. The daily chart was sitting right at a prior resistance zone (a previous VWAP anchor from three months ago) and the 8 EMA was sloping down . by brian shannon technical analysis using multiple link
To practice you need specific software capabilities:
Bridges the gap between daily data and intraday noise. (Note: A standard US market day is 390 minutes. A 65-minute chart divides the day perfectly into 6 equal candles, eliminating the distorted partial candle that a 60-minute chart creates). Stop analyzing single charts in isolation
+-------------------------------------------------------+ | PRIMARY TREND (Weekly) | | - Identifies the macro-environment bias | +-------------------------------------------------------+ │ ▼ +-------------------------------------------------------+ | INTERMEDIATE TREND (Daily) | | - Identifies setups, major support & resistance | +-------------------------------------------------------+ │ ▼ +-------------------------------------------------------+ | EXECUTION TREND (Intraday) | | - Pinpoints entry triggers & stop management | +-------------------------------------------------------+ Understanding the 4 Stages of Market Cycles
: A clear uptrend characterized by higher highs and higher lows. Without the map, the friend will lead you off a cliff
The trader risked $2.75 to make $9.75 (3.5:1 risk-reward). This was only possible because the trader linked the weekly support to the daily exhaustion to the 4-hour trigger.
Monitor the stock during market hours. When the price breaks above the morning high or the intraday VWAP on a surge of volume, trigger the buy order.
Open your Monthly chart. Draw the most obvious trendline. Note the closing price relative to the 20-month SMA. Action: If monthly is bullish, set your mental direction to LONG.
Shannon’s methodology centers on the idea that the "market" is a collection of diverse participants—from intraday scalpers to institutional swing traders—each watching different clocks.