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MTFA helps you identify these stages across different horizons. A stock might be in a Stage 2 markup on the daily chart, but undergoing a brief Stage 4 markdown on the 15-minute chart. The Three-Tier Time Frame Framework
The origin point of sudden institutional supply or demand shocks.
Defines the immediate price action, short-term patterns, and precise entry triggers. It tells you when and where to do it. AI responses may include mistakes
The asset breaks out above resistance. Price makes higher highs and higher lows. The asset trades cleanly above rising moving averages. This is the optimal environment for long positions. Stage 3: Distribution
The primary goal is trend alignment. Traders look at a longer-term chart to find the dominant trend. They then use a shorter-term chart to find low-risk entry points. Risk Mitigation
The trend on the intermediate timeframe should align with the trend of the long-term timeframe. 3. The "VWAP" - Volume Weighted Average Price A stock might be in a Stage 2
Shannon’s major contribution to the field, detailed further in his second book Maximum Trading Gains with Anchored VWAP , is the popularization of the .
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To apply Shannon's approach in practice: It tells you when and where to do it
: Shannon breaks down market cycles into four distinct phases: Accumulation , Markup , Distribution , and Decline . Understanding these helps traders determine when to be aggressive and when to stay sidelined.
To find precise entry points, time breakouts, and manage risk. The Four Stages of Market Cycles