Understanding where to place stop-losses based on the "support and resistance" levels identified across different scales. The Four Stages of the Market Cycle
The first step in Shannon’s methodology is to identify the primary trend. If you are a day trader, your anchor might be the Daily or 60-minute chart. If you are a swing trader, you might look at the Weekly chart. On this timeframe, you should be asking yourself: Are we in an uptrend, a downtrend, or a consolidation? 2. The Tactical Timeframe (The Current Swing)
As a trader, I had always been fascinated by the world of technical analysis. I spent countless hours studying charts, trying to make sense of the various patterns and trends that emerged. But despite my best efforts, I often found myself feeling overwhelmed and uncertain about how to apply technical analysis in a practical way. Understanding where to place stop-losses based on the
To implement Shannon’s strategies, you must structure your charting software to show the relationship between different time horizons. Here are the recommended configurations for two types of traders: For Swing Traders (Holding days to weeks)
Used to identify the current cycle of the stock (accumulation, markup, distribution, or markdown). Execution Trend (Intraday Charts): If you are a swing trader, you might
Tells you when to do it. It provides precise entry points with minimal risk.
Configuring charting platforms to display synchronized timeframes for more efficient analysis. The Tactical Timeframe (The Current Swing) As a
Used to find the macro trend and daily key levels.
Brian Shannon's approach to technical analysis using multiple timeframes involves analyzing charts across three main timeframes:
The book and its updated concepts introduce specific technical indicators that bridge multiple timeframes:
What is your typical ? (Day trading, swing trading, or long-term investing?) Which charting software do you currently use? Share public link