: The full 184-page textbook is available in hardcover on Amazon and directly through the author's site, Alphatrends .
The asset moves sideways after a long downtrend. : The full 184-page textbook is available in
The asset breaks below Stage 3 support. It makes lower highs and lower lows. Moving averages trend downward. Sentiment: Fear, panic, and eventual capitulation. It makes lower highs and lower lows
Shannon himself typically uses five timeframes simultaneously: a weekly chart for the longest-term context, a daily chart for the primary swing trend, and 30-minute, 15-minute, and 5-minute charts for execution and micro-structure. He famously states that he does not have a "favorite" timeframe because the real edge comes from understanding how they weave together and influence one another. A bullish signal on a 5-minute chart is far less reliable if the daily chart shows a powerful downtrend. The key is alignment. By waiting for alignment across timeframes
The asset breaks out of Accumulation, making higher highs and higher lows. Moving averages trend upward.
By waiting for alignment across timeframes, you reduce the probability of premature entries.
A typical strategy begins with a weekly or daily chart to determine the overall direction (bullish, bearish, or ranging). Next, the trader drops to a four-hour or one-hour chart to spot pullbacks or consolidations within that trend. Finally, a 15-minute or 5-minute chart is used to time the actual trade, often with the help of indicators like moving averages, volume profiles, or support/resistance levels. This layered approach filters out false signals that appear significant on a small chart but are meaningless on a larger scale.