Brian Shannon's book, Technical Analysis Using Multiple Timeframes
The "Alpha Trader" Blueprint: Deconstructing Brian Shannon’s Multiple Timeframe Method
In the chaotic world of day trading and investing, there is one phrase that separates the gamblers from the professionals: Context.
- The Lesson: Shannon teaches you how to align the Long Term (trend direction), Intermediate Term (setup), and Short Term (trigger) timeframes.
- Why it helps: This solves the common trader problem of trying to buy a dip on a 5-minute chart while the daily chart is in a freefall. It teaches you to only trade short-term setups that align with the longer-term trend.
Moving Averages: He utilizes specific moving averages, such as the 5-day moving average, to determine short-term trend direction and potential reversals.
Stage 3: Distribution – Volatile sideways action as big players exit.
