: Sideways movement at the top as institutional players exit. : The downtrend where price falls under its own weight. Key Technical Pillars Brian Shannon’s approach emphasizes anticipating price movement rather than just reacting to it.
Used to identify the primary trend and major support/resistance levels (e.g., Daily or Weekly charts). : Sideways movement at the top as institutional players exit
Instead of catching a falling knife, Shannon waits for the price to prove it has found support and then buys the subsequent rally. www.thetraderisk.com Accessing the Material Used to identify the primary trend and major
A lower timeframe breakout (e.g., 15-minute chart) is only valid if it coincides with increasing volume on the higher timeframe (daily). Breakouts on decreasing volume are traps. Breakouts on decreasing volume are traps
Brian Shannon’s Technical Analysis Using Multiple Timeframes is widely regarded as a foundational text for active traders. The book’s central thesis is that financial markets are fractal in nature; meaning, the same patterns repeat on different scales. To trade successfully, one must understand the "context" of the trade, which is derived from analyzing price action across three distinct timeframes. Shannon argues that most trading failures occur because traders look at only one timeframe, missing the larger trend or the precise entry point.