Technical Analysis Using Multiple Timeframes Brian Shannon -

Once you have established the direction from the Intermediate chart, you zoom in. This chart is purely tactical. It is used to time your entry and manage your risk.

Once the weekly chart confirms a bullish bias, move down to the daily chart. Here, Shannon looks for the "Fallen Angel" or "Slingshot"—a stock that has pulled back to a logical support level (like the 50-day SMA or a previous resistance-turned-support) without breaking the weekly trend.

The daily chart answers the question: Is the current pullback healthy or broken? technical analysis using multiple timeframes brian shannon

Shannon pays close attention to Volume. He wants to see volume drying up on the pullback (sellers exhausting) and volume expanding on the bounce (buyers returning).

One of Shannon’s key points is that market structure is fractal. A consolidation pattern on a daily chart (like a cup and handle) looks exactly the same on a 5-minute chart. Once you have established the direction from the

Shannon argues that the timeframe does not change the psychology of the market participants, only the duration of the trade.

By aligning these timeframes, you are ensuring that the "big money" (Higher Timeframe) and the "fast money" (Lower Timeframe) are moving in the same direction. Once the weekly chart confirms a bullish bias,

A moving average that is flat means the stock is ranging. A moving average that is steep (45 degrees or more) means the trend is strong. You must align your trades with the steepest timeframe.