One of the most compelling aspects of Shannon’s approach is its versatility across different asset classes—a consistency he maintains in his daily market reviews. For example, in his broader reviews, he regularly covers major U.S. ETFs such as , alongside assets like gold, crude oil, and Bitcoin . When analyzing Bitcoin, which lacks traditional earnings or book value, the emphasis remains on pure price behavior and trend alignment across timeframes. For crude oil or gold, the focus shifts to how global capital flows and intermarket dynamics influence these assets, all filtered through the lens of VWAP anchored to key geopolitical or economic events.
The core lessons are simple enough to write on an index card:
In trading, viewing a market through only one chart is like looking at the world through a straw. provides the definitive framework to fix this blind spot. Published in 2008 by acclaimed market technician Brian Shannon, CMT , this text bridges the gap between macro market cycles and precise intraday execution. technical analysis using multiple timeframes brian shannon
You only enter a trade when the lower timeframe aligns with the higher timeframe’s direction. 📈 The Four Stages of the Market Cycle
Shannon’s core philosophy is elegantly simple but profoundly effective: price action viewed across different magnification levels reveals the full story the market is trying to tell. One of the most compelling aspects of Shannon’s
Consider a trader evaluating a stock, XYZ Corp. The weekly chart shows price above the 50 EMA and above an anchored VWAP from the 52-week low—a bullish higher timeframe. The daily chart pulls back to the 21 EMA on decreasing volume. The trader places the stock on a watchlist. The next day, the 4-hour chart stabilizes at the anchored VWAP and prints a bullish hammer candle. The lower timeframe (15-minute) then breaks a small downtrend line with a surge in volume. The trader enters long. The stop loss is placed just below the anchored VWAP on the 4-hour chart (logical, structural support). The target is the next anchored VWAP resistance level from the prior high. Every decision—trend, entry, stop, target—is derived from a specific timeframe. There is no guesswork.
No discussion of Brian Shannon’s multiple‑timeframe framework would be complete without addressing . Shannon has been a pioneer in the use of VWAP since he first discovered the tool in 2003. When analyzing Bitcoin, which lacks traditional earnings or
: Always trade in the direction of the higher timeframe trend to stay on the side of larger institutional money.