Brian Shannon, CMT, is the author of Technical Analysis Using Multiple Timeframes (2008, 184 pages) and the founder of AlphaTrends. His central insight is that financial markets are : similar patterns and trends recur across every scale, from a one‑minute chart to a monthly chart. Instead of asking “Which timeframe is best?” Shannon teaches that the real edge comes from understanding how timeframes interact – always beginning with the higher, more reliable context and then drilling down for precise execution.
Technical Analysis Using Multiple Timeframes : Brian Shannon
Shannon calls himself the “adoptive father” of Anchored VWAP (he credits the original work to Dr. Paul Levine). AVWAP is a volume‑weighted average price anchored to a specific – an earnings gap, a major high/low, or a breakout. It reveals who is trapped and who is in control. For example, if price is above AVWAP anchored at a recent breakout, institutions are likely in control. If price falls decisively below it, the breakout has failed and you exit. Brian Shannon, CMT, is the author of Technical
| Mistake | Why It Hurts | |---------|---------------| | Entering on a lower timeframe without checking the higher timeframe | You buy a short‑term bounce inside a longer downtrend – a quick loss. | | Using the same indicator on every timeframe (e.g., RSI on weekly, daily, and hourly) | It creates duplication, not confluence. You see the same signal three times, which adds no new information. | | Overtrading because shorter charts always look active | Shannon warns that day trading is emotionally harder and statistically less successful than swing trading. |
The standard VWAP resets at the end of every trading day. The AVWAP, however, allows you to "anchor" the calculation to any significant historical event—a major earnings report, a gap down, or a significant high/low. You can then watch the price bounce or reject off that level for months into the future. This allows you to see objectively whether the bulls or bears have been in control since that specific event. Technical Analysis Using Multiple Timeframes : Brian Shannon
By analyzing charts across multiple time frames, traders can:
Next, he dropped to the . Here, price had just pulled back to the rising 50-period SMA (a key value area Shannon often discusses) and was forming a small inside bar—a moment of compression. The 4-hour RSI was near 50, not overbought. Wave: coiling for continuation. It reveals who is trapped and who is in control
If you have digested the basics of the technical analysis using multiple time frame by brian shannon pdf top guide, here are three advanced takeaways that professionals use.
Market is in a healthy uptrend; focus on long positions.
💡 : If you realise you entered for the wrong reason, exit immediately. Don’t “give it a chance.” That one decision separates consistent traders from gamblers.