Shannon argues that every market moves through four distinct phases. Recognizing which stage a stock is in helps a trader decide whether to be aggressive, defensive, or sidelined.
Shannon's signature approach is looking at multiple "magnification levels" of the same asset to ensure you aren't fighting a larger trend. He typically monitors five timeframes simultaneously: . Shannon argues that every market moves through four
Brian Shannon’s is widely considered a foundational "textbook" for traders. Rather than offering a rigid, one-size-fits-all system, Shannon provides a logical framework for understanding market structure and aligning trades with the dominant trend. He typically monitors five timeframes simultaneously:
The most profitable phase characterized by higher highs and higher lows. This is where long positions are favored. The most profitable phase characterized by higher highs
After a big run-up, the price moves sideways again as large players sell to latecomers.
Technical Analysis Using Multiple Timeframes ... - Amazon.com