Technical Analysis Using Multiple Time Frame By Brian Shannon -
In Shannon’s methodology, if price is above VWAP on the Daily chart, the bulls are in control. If price retests that VWAP on the 60-minute chart and bounces, that is a "Shannon-approved" high-probability entry. Anchor VWAP to a significant event—the day of earnings, the day of a Fed announcement, or the start of a major breakout. Watch how price respects that level for weeks to come. The Cardinal Sin: Over-optimizing One of the best warnings Shannon gives is about "analysis paralysis."
You cannot know where a stock is going tomorrow (lower TF) if you don't know where it is standing relative to the tide (higher TF).
Traders often load their charts with 7 indicators, 4 time frames, and 3 oscillators. They become so confused by conflicting signals that they miss the move entirely. In Shannon’s methodology, if price is above VWAP
This is Shannon’s secret sauce. Most retail traders jump from the Daily straight to the 1-minute chart. That is a mistake. The 60-minute chart filters out the "noise" of the 1-minute chart but reacts faster than the Daily.
The "VWAP" Anchoring Technique Brian Shannon is arguably the world's leading expert on Anchored VWAP (Volume Weighted Average Price). Unlike a simple moving average, VWAP shows you where "fair value" is based on actual trading volume. Watch how price respects that level for weeks to come
Enter . In his landmark book, Technical Analysis Using Multiple Time Frames , Shannon doesn't just teach you indicators; he teaches you how to align the "wind" of the higher time frames with the "rudder" of the lower time frames.
You wait for the 60-minute chart to pull back to a (support, VWAP, or a moving average). You do not chase breakouts here; you wait for the price to come to you . 3. The Lower Time Frame (The Trigger) Time Frame: 15-minute Chart Question to answer: Is the engine starting up again? They become so confused by conflicting signals that
Most traders lose money not because they are bad at reading charts, but because they are looking at the wrong chart.
You cannot escape the gravity of the higher time frame.
Once the Daily is bullish and the 60-minute is at support, you drop to the 15-minute chart to look for . You are looking for a "reversal of the pullback"—specifically, a higher low or a bullish moving average crossover.