Panic sets in. Institutional support is gone, and trapped buyers are forced to liquidate their positions at a loss.
Shannon advocates for analyzing the market in a specific order:
If you’ve spent any time in the trading community, you’ve likely heard of Brian Shannon and his classic book, Technical Analysis Using Multiple Timeframes Panic sets in
Shannon teaches traders how to harmonize these conflicting signals. By looking at the market through multiple lenses—typically the monthly, weekly, daily, and intraday charts—traders can achieve two critical objectives:
Before diving into the book, it’s important to understand the author. Brian Shannon is a seasoned trader with decades of experience in stocks, futures, and options. He is best known for his practical, no-nonsense approach to technical analysis and his ability to explain complex concepts in plain English. Shannon is also the founder of AlphaTrends (alphatrends.net), where he shares daily market analysis and educational content. His book, Technical Analysis Using Multiple Timeframes , was first published in 2008 and has since become a staple on the desks of retail and professional traders alike. By looking at the market through multiple lenses—typically
Add the VWAP indicator to your charts and observe how price reacts to it on the 15-minute timeframe.
Identify major structural levels that short-term traders might miss. Shannon is also the founder of AlphaTrends (alphatrends
Short selling receives dedicated attention in Shannon’s framework. He provides clear guidance on how to “borrow stock from a broker to sell short and buy back at a lower price to profit,” always using a buy stop to limit risk. Key principles include: