Shannon’s methodology is centered on the concept that every market cycle moves through four distinct, repeatable stages: Occurs after a prolonged downtrend.
Price moves sideways as institutional buyers quietly build positions. Avoid or trade the range; wait for a breakout. The stock breaks out into a sustained, healthy uptrend. Buy pullbacks and breakouts on lower timeframes. Stage 3: Distribution
Shannon's approach is built on the premise that all markets move through four distinct phases. Identifying these stages across multiple timeframes is critical for trend alignment: Stage 1: Accumulation Shannon’s methodology is centered on the concept that
Technical analysis using multiple timeframes involves analyzing a financial instrument's price chart across different timeframes to gain a more comprehensive understanding of its price action. This approach helps traders and investors to identify trends, patterns, and potential trading opportunities that may not be visible on a single timeframe.
Allows for smaller stop-loss distances relative to larger profit targets. The stock breaks out into a sustained, healthy uptrend
Defined by a sustained uptrend with higher highs and higher lows.
His experience grants him a unique perspective. As his bio states, he is a "consistently profitable trader" who has taught tens of thousands of people to become better traders. Unlike many theorists, Shannon’s advice comes directly from the trenches of active trading. Unlike many theorists
Shannon is a strong proponent of using the , particularly the "Anchored VWAP." Unlike a simple moving average, VWAP incorporates volume data, showing the average price paid for a stock over a specific period.