Technical Analysis Using Multiple Timeframes Brian Shannon Official

The cornerstone of Shannon’s methodology is "Top-Down Analysis." This is the process of starting with the "Big Picture" and narrowing the focus down to the specific trade execution. Shannon advocates for a hierarchy of timeframes, typically using a ratio of roughly 1:6 between timeframes (e.g., Weekly > Daily > Hourly, or Daily > Hourly > 10-Minute).

Using a lower timeframe (e.g., a 60-minute or 15-minute chart for a swing trade) allows the trader to fine-tune their entry. The goal is to find a micro-structure that aligns with the macro-structure.

: Shannon emphasizes that price is the ultimate truth of supply and demand, while volume reflects the emotional state of market participants.