Technical Analysis Using Multiple Timeframes Brian Shannon

The asset breaks below Stage 3 support. It begins making lower highs and lower lows.

Data & calculations

Shannon typically analyzes an asset across five timeframes simultaneously to observe the interplay of broad trends with short-term price action:

UX details

Brian Shannon suggests a "Rule of Three" approach to ensure you aren't overanalyzing. The standard approach is to use three distinct timeframes:

Creating a for your multi-timeframe trade entries.

It reveals the "average" price paid by all participants since that specific event, acting as a powerful level of dynamic support or resistance. Psychology: technical analysis using multiple timeframes brian shannon

The price is consistently above a rising 20-day and 50-day moving average.

Defines the dominant market structure and overarching trend. It answers the question: Are the big institutions buying or selling?

Shannon urges traders to avoid binary questions like "Are you bullish or bearish?" Instead, he argues that the answer always depends on the timeframe. A stock might show a declining long-term trend while simultaneously exhibiting a short-term upward bounce. Understanding these nuances is the key to successful analysis. The asset breaks below Stage 3 support

Imagine you’re driving down a highway using only your rearview mirror. That’s how most traders operate—they look at a single timeframe and make decisions based on a narrow snapshot of price action. But what happens when the daily chart looks bullish while the weekly chart has been rolling over? You end up fighting the broader trend, and the market has a cruel way of punishing traders who ignore its larger narrative.

Mastering the Market: The Definitive Guide to Technical Analysis Using Multiple Timeframes by Brian Shannon

Suggested readings and resources (primary) The standard approach is to use three distinct

The asset breaks below the support of the Stage 3 distribution phase. It begins making lower highs and lower lows. Moving averages slope downward, acting as overhead resistance during temporary relief rallies. This is the environment for short-selling or holding cash. 3. Selecting Your Timeframe Triads