: A clear uptrend characterized by higher highs and higher lows.
A cornerstone of Shannon's analysis is the recognition of the four distinct stages a stock moves through:
Shannon’s methodology centers on the idea that the "market" is a collection of diverse participants—from intraday scalpers to institutional swing traders—each watching different clocks.
: When multiple timeframes agree on a direction, the "odds are stacked" in your favor because various groups of buyers or sellers are likely to act simultaneously. The Four Stages of Market Cycles
: Use higher timeframes (like the daily or weekly charts) to identify the primary trend and overall market structure.
Mastering the stock market requires more than just identifying a single pattern; it involves understanding how different market participants interact across varying periods. Brian Shannon’s seminal work, , serves as a definitive guide for traders to align these perspectives for higher probability and lower risk entries. The Core Philosophy: Trend Alignment
Technical Analysis Using Multiple Timeframes by Brian Shannon
: Sideways price action where institutional "smart money" begins building positions.