Using multiple timeframes, as advocated by Brian Shannon, can significantly enhance your technical analysis and trading decisions. By analyzing charts across different timeframes, you can confirm trends, identify patterns, and improve trade timing. Remember to choose timeframes that align with your trading goals and market analysis, and always use proper risk management techniques.
Practical workflow (recommended routine)
Without analyzing all three, you will either sell too early (fighting the tide) or buy too late (chasing the ripple).
After a downtrend, price moves sideways as institutional players build positions. Volatility is low, and price remains below key moving averages.
This is the only stage where you should be aggressively long. Stage 3: Distribution The uptrend stalls and price becomes volatile.