The trend on the intermediate timeframe should align with the trend of the long-term timeframe. 3. The "VWAP" - Volume Weighted Average Price

: A period of sideways movement where smart money begins building positions.

Brian Shannon, CMT (Chartered Market Technician), is the founder of AlphaTrends, an online trading community established in 2005. With decades of professional trading experience, Shannon is widely recognized for his ability to simplify complex market dynamics. His book, Technical Analysis Using Multiple Timeframes , is considered essential reading for swing traders and day traders alike. Shannon’s core philosophy hinges on price action, volume, and the anchored volume-weighted average price (AVWAP)—a tool he pioneered and popularized. The Core Philosophy: Why Multiple Timeframes Matter

The foundation of Shannon’s methodology relies on tracking financial instruments across at least three distinct timeframes. This practice eliminates market "noise" and isolates the dominant trend direction.

Mastering the Market: Technical Analysis Using Multiple Time Frames by Brian Shannon

Market is in a healthy uptrend; focus on long positions.

: Increased volatility and sideways movement as large players exit.

The stock moves sideways after a long decline. The moving averages flatten out. Smart money is quietly buying, but no clear trend exists.

If the daily chart is above a rising 200-day MA, look only for buying opportunities.

Without this hierarchy, you are guessing. With it, you have a statistical edge.

: Successful trades occur when multiple timeframes agree. For example, a bullish setup is strongest when the weekly, daily, and intraday charts are all in a "markup" phase.

What is your ? (Day trading, swing trading, long-term investing?)

. He learned to identify the "Primary Trend" on the Daily, the "Intermediate Trend" on the Hourly, and only then—once those two were in agreement—did he use the 5-minute chart to time his entry.

The most common trap traders fall into is . If you monitor too many time frames (e.g., the 1-minute, 3-minute, 5-minute, 15-minute, hourly, 4-hour, daily, and weekly charts), you will always find conflicting indicators.

: If the weekly chart shows a clear Stage‑2 uptrend (higher highs and higher lows) with volume supporting the advance, the primary bias is bullish. You will then look for pullbacks on the daily chart to enter.

Shannon's approach is based on several key principles: