15-Minute or 30-Minute Chart — Reveals the intraday market structure and key morning ranges.
"Technical Analysis Using Multiple Timeframes" is widely considered a "top" book for a reason. It bridges the gap between overly academic textbooks and oversimplified "get rich quick" guides.
Your stop loss should sit just below a logical support level on the intraday chart. This ensures a small, defined loss. If the trade works, you can trail your stop higher, ultimately using the daily or weekly VWAP as a final exit target.
Shannon warns that a signal on a lower timeframe does override a higher timeframe trend. A bullish setup on a 5-minute chart is merely a countertrend bounce if the daily chart is in a Stage 4 decline. Context always comes first . 15-Minute or 30-Minute Chart — Reveals the intraday
Your goal is to identify which stage the stock is in. You are primarily looking for stocks in Stage 2 (Markup) to buy, or Stage 4 (Decline) to short, ignoring stocks in noisy stages 1 and 3.
Looking only at daily charts can cause traders to miss optimized, low-risk entry points, leading to wider stop-losses. The Multi-Timeframe Solution
Stage 2: Markup (Accumulation complete) /\ / \ / \ Stage 3: Distribution (Top forming) / \_______ / \ _______/ \ Stage 1: Accumulation \ Stage 2 (Short term) \ \_______ Stage 4: Markdown (Downtrend) Stage 1: The Accumulation Phase Your stop loss should sit just below a
The absolute highest high or lowest low of a cycle.
65-Minute or 30-Minute Chart — Used to fine-tune entry prices and pinpoint intraday reversals. (Note: Brian Shannon frequently advocates for the 65-minute chart over the 60-minute chart because it divides the 390-minute US market day perfectly into 6 equal candles). The Day Trader Triad
Shannon suggests that traders should use at least three timeframes to gain a comprehensive understanding of a stock’s behavior. The specific timeframes vary based on the trader's style, but the structural approach remains the same: 1. The Long-Term Trend (The "Map") Weekly or Daily. Shannon warns that a signal on a lower
Confusion and denial. Institutional players are selling their positions to late-coming retail buyers.
Aligning multiple timeframes ensures you are "trading with the wind at your back". :
Shannon calls himself the “adoptive father” of Anchored VWAP (he credits the original work to Dr. Paul Levine). AVWAP is a volume‑weighted average price anchored to a specific – an earnings gap, a major high/low, or a breakout. It reveals who is trapped and who is in control. For example, if price is above AVWAP anchored at a recent breakout, institutions are likely in control. If price falls decisively below it, the breakout has failed and you exit.