Weekly chart. Used to check major support/resistance and institutional health.
Looking at too many timeframes (e.g., 1-min, 5-min, 15-min, 30-min, 1-hour, 4-hour, daily, weekly) will cause conflicting signals. Stick to three distinct tiers.
Look for volume to dry up during pullbacks (Stage 2 consolidations) and surge on breakouts. This confirms institutional participation. Common Pitfalls to Avoid
Here is an article synthesizing his core methodology. technical analysis using multiple timeframes brian shannon
| Hour | Price | | --- | --- | | 9:00 | $98 | | 10:00 | $99 | | 11:00 | $100 | | 12:00 | $101 |
For instance, a trader analyzing a daily chart may identify a bullish trend, but fail to notice a larger bearish trend unfolding on the weekly chart. Conversely, an investor analyzing a weekly chart may identify a long-term bullish trend, but overlook a short-term bearish pattern on the daily chart. By focusing on a single timeframe, traders and investors may miss critical information that can impact their trading decisions.
I can help you identify the best timeframe combinations for your preferred asset class. Weekly chart
Many traders make the mistake of focusing exclusively on a single chart, such as a 5-minute chart for day trading or a daily chart for swing trading. This tunnel vision leads to missing the broader market context.
If a stock has already stretched far above its 20-day EMA on the daily chart, it is extended. Wait for a multi-timeframe consolidation rather than buying at the absolute peak of momentum. 7. Conclusion: Context is King
Shannon pioneered the widespread adoption of the . Unlike a standard VWAP that resets daily, an Anchored VWAP allows traders to choose a specific starting point in time—such as a major earnings report, a historical high/low, or a structural breakout day. Stick to three distinct tiers
You can place your stop-loss order based on a clear structural level (like below a previous day's low) rather than arbitrary price movement 1.2.4.
, provides a systematic framework for understanding market structure and psychology through the lens of multiple chart durations.
The daily chart answers the question: Is the current pullback healthy or broken?