Shannon emphasizes that If the daily ribbon is gray (Stage 1 or 3), you reduce size or step aside entirely. If the ribbon is green but price is far above VWAP without a recent pullback, you wait. If the higher timeframe contradicts your lower‑timeframe signal, you pass.
The price is below a declining 20-day and 50-day moving average.
One of the most compelling aspects of Shannon’s approach is its versatility across different asset classes—a consistency he maintains in his daily market reviews. For example, in his broader reviews, he regularly covers major U.S. ETFs such as , alongside assets like gold, crude oil, and Bitcoin . When analyzing Bitcoin, which lacks traditional earnings or book value, the emphasis remains on pure price behavior and trend alignment across timeframes. For crude oil or gold, the focus shifts to how global capital flows and intermarket dynamics influence these assets, all filtered through the lens of VWAP anchored to key geopolitical or economic events.
One of Shannon's most significant contributions is popularizing the Anchored Volume Weighted Average Price (AVWAP) technical analysis using multiple timeframes brian shannon
Shannon famously uses the 65-minute timeframe. Since the U.S. market is open for 390 minutes, this creates six perfectly equal bars per day, eliminating the "partial bar" at the end of the day found in 60-minute charts. Use this to find intermediate patterns like bull flags or cups-and-handles. 3. The 5- or 10-Minute Chart (The "How")
Brian Shannon solves this problem through fractional structure analysis. In his methodology, shorter timeframes are treated as micro-components of longer timeframes. He typically monitors five distinct intervals simultaneously:
Brian Shannon’s "Technical Analysis Using Multiple Timeframes" provides a framework for identifying high-probability trades by aligning market trends across weekly, daily, and intraday charts. The methodology emphasizes managing risk through the four stages of market cycles and utilizing tools like Anchored VWAP to confirm trade setups. For an overview of the book, visit Amazon.com Shannon emphasizes that If the daily ribbon is
This paradox is why Brian Shannon, founder of Alphatrends and author of Technical Analysis Using Multiple Timeframes , argues that looking at a single chart is like driving a car with the windshield painted black—you can see the speedometer, but you have no idea where the road is going.
If you want an explanation of how to use within these timeframes?
Never take a long day-trade or swing-trade on a 5-minute breakout if the daily chart is in a structural Stage 4 markdown. The macro trend will almost always crush the micro setup. The price is below a declining 20-day and
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Lower timeframes are filled with "noise" (random fluctuations). Higher timeframes provide clarity on the true trend 1.2.2.