A foundational pillar of Shannon's methodology is recognizing that all financial assets move through four distinct structural stages. Identifying the stage on a higher timeframe tells you exactly how to behave on the lower timeframe. Stage 1: Accumulation (The Bottom)
Before diving into the specifics, it's important to understand the author's credibility. Brian Shannon, CMT (Chartered Market Technician), is an American author, equity trader, and technical analyst with over three decades of experience. He published his acclaimed book, Technical Analysis Using Multiple Timeframes , in 2008 to educate beginning and intermediate traders on the tools and techniques that have made him "one of the best indie traders in the business". Beyond this foundational work, Shannon is also the author of Maximum Trading Gains With Anchored VWAP: The Perfect Combination of Price, Time, and Volume , which expands on his earlier work.
Many custom indicators and "engines" have been built to replicate Shannon's logic. The is a popular script that automates his swing trading methodology. It focuses on three key pillars: Brian Shannon, CMT (Chartered Market Technician), is an
Detail how to identify discussed in the book. Compare this approach to volume-based trading strategies .
Focuses on the current market cycle stage—such as accumulation or markup—to determine the overall direction. Many custom indicators and "engines" have been built
Mastering Market Trends: Technical Analysis Using Multiple Timeframes by Brian Shannon
Brian Shannon Subject: Technical Analysis, Swing Trading, Market Structure Market Structure Avoid aggressive long positions
Avoid aggressive long positions; wait for a breakout. 2. Stage 2: The Markup Phase
Let the macro chart dictate your profit target, but let the micro chart dictate your stop-loss.
Shannon is a pioneer in using Anchored VWAP , which allows traders to anchor a volume-weighted average from a specific significant point (like a cycle high, low, or earnings date) to assess the true average price since that event. Key Trading Strategies Covered Technical Analysis Using Multiple Timeframes Report | PDF
Moving averages flatten out and price whipsaws back and forth through them.