Frame By Brian Shannonpdf Work - Technical Analysis Using Multiple Time

Mastering Market Context: A Deep Dive into Technical Analysis Using Multiple Timeframes by Brian Shannon

Weekly:

Strong uptrend, above 20-week EMA, recent higher low. Daily (Anchor): Price pulls back to the 50-day SMA and a prior resistance-turned-support level. A daily candle closes with a long lower wick (rejection of lower prices). 60-min: Price breaks above a small downtrend line and the 20-period EMA. Volume increases. Trade Entry: Long at the break of the 60-min downtrend line. Initial Stop: Below the most recent 60-min swing low (which is below the daily support). Target: The previous daily swing high (aligned with weekly resistance).

• Is the weekly chart making higher highs and higher lows (uptrend)?
• Is price above or below the 20-week EMA?
• Are there clear weekly reversal patterns (e.g., a hammer at support)?

1. Trading the Lower Timeframe in Isolation: Entering a long because the 5-minute chart looks strong, while the daily chart is breaking down.
2. Forcing a Trade: Trying to make a trend where none exists. If the higher timeframe is flat (trading range), lower timeframe signals are less reliable and often whipsaw.
3. Ignoring Volume: Shannon stresses that volume confirms the higher timeframe trend. A daily uptrend on falling volume is a warning.
4. Overtrading from “Signal Confetti”: When all timeframes are choppy, every indicator gives random signals. Shannon would say: step away.

Strengths