The price breaks below the support level of the distribution zone. A sustained downtrend begins. Moving averages slope downward, acting as overhead resistance. Shannon strongly advises against "bottom-fishing" during Stage 4, recommending short selling or staying in cash instead. The Anchor Timeframe Method
When these distinct timeframes align, different groups of market participants—from intraday scalpers to institutional portfolio managers—begin buying or selling simultaneously. This convergence exponentially increases the odds of a powerful, sustained move. The Four Stages of Market Cycles
By analyzing these layers simultaneously, you ensure that you are never fighting the dominant market trend, while still maintaining the ability to enter trades with tight, low-risk stop-losses. 2. The Four Stages of the Market Cycle
While popularised further in his later work, Shannon emphasizes the importance of tracking where volume occurred, not just when. Volume at price bars show heavy accumulation zones, helping traders find true support rather than arbitrary price levels. Support and Resistance Role Reversal
Price trades below a declining 20-day and 50-day moving average. The price breaks below the support level of
Brian Shannon's "Technical Analysis Using Multiple Timeframes" focuses on aligning price action across weekly, daily, and intraday charts to identify high-probability trades based on market cycle stages. Key methodologies include identifying four market stages (Accumulation, Markup, Distribution, Markdown) and using Anchored VWAP to determine dynamic support and resistance. For more information, visit Amazon.com.au Technical Analysis Using Multiple Timeframes - Amazon
By ensuring all timeframes are "in sync," a trader significantly increases their edge. Anchored VWAP (AVWAP)
For those looking to learn more about technical analysis using multiple timeframes, we are excited to offer an exclusive free PDF of Brian Shannon's book, "Technical Analysis Using Multiple Timeframes." This comprehensive guide provides traders and investors with a detailed understanding of how to apply technical analysis using multiple timeframes.
The 14l (likely a reference to a specific chapter or methodology in a 14-lesson structure, sometimes referenced in online studies of the book) involves a structured approach: A. The Weekly Chart (The "Map") The Four Stages of Market Cycles By analyzing
Only buy in Stage 2 (Markup); only short in Stage 4 (Markdown).
The "14l" in the keyword phrase likely refers to the 14th edition or version of the PDF. However, we are providing the most up-to-date and exclusive free PDF of Brian Shannon's book, "Technical Analysis Using Multiple Timeframes."
| Indicator | Role | | :--- | :--- | | | Signals the short-term sentiment (bullish vs. bearish) of recent participants. | | Multiple Timeframe VWAP | Identifies where the "average" trader is positioned to find value zones. | | Market Structure & Stages | Identifies the 4 stages of a market cycle: accumulation, markup, distribution, and decline. | | Volume Analysis | Confirms whether a price move has enough strength to continue. |
Shannon heavily relies on the 10-period and 20-period EMAs for short-term trend tracking, alongside the 50-period and 200-period Simple Moving Averages (SMAs) for institutional levels. Moving averages provide a visual gauge of momentum and act as dynamic areas of support and resistance. Volume at Price (Anchored VWAP) and 200-period averages)
Used to fine-tune entry and exit points, manage immediate risk, and place tight stop-losses. This is often the 5-minute, 10-minute, or 15-minute chart. The Four Stages of the Market Cycle
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Defines the trade setup and current market structure (accumulation or distribution).
Shannon's approach to multiple timeframe analysis offers several benefits, including:
Many traders fail because they look at a single chart in isolation. A setup that appears highly bullish on a 5-minute chart might actually be a minor retracement directly into a massive resistance level on the daily chart. Multiple timeframe analysis eliminates this blind spot.
While the book heavily features moving averages (specifically the 10, 20, 50, and 200-period averages), Brian Shannon’s broader work pioneered the use of Anchored VWAP.