Technical Analysis Using Multiple Time Frame By Brian Shannonpdf ((link)) Full

Focus exclusively on buying dips or trading bullish breakouts. Stage 3: Distribution (The Topping Phase)

– 5-minute or 15-minute chart

To master these techniques, the Alphatrends community often recommends studying the following:

Upward momentum stalls. Price moves sideways as smart money takes profits. Volatility typically increases. Focus exclusively on buying dips or trading bullish

Defines the dominant, long-term trend and major support/resistance levels.

10-period and 20-period exponential moving averages (EMAs) alongside the daily VWAP. Step-by-Step Execution Strategy

A stock might be in a daily uptrend (long-term), but experiencing a 30-minute downtrend (short-term) due to a temporary pullback. By understanding this, a trader can buy on the short-term weakness, aligning with the larger, more powerful, long-term trend. Volatility typically increases

A sustained uptrend with higher highs and higher lows. This is the most profitable stage for long positions.

| Stage | Phase Description | Primary Trading Action | | :--- | :--- | :--- | | | Accumulation: The "calm before the storm." A bottoming process where "smart money" accumulates shares. The previous downtrend has ended, and the stock begins to trade sideways. Volatility is typically low. | Anticipate a move higher. This is a time to prepare and screen for potential long positions and to cover short positions. | | Stage 2 | Markup: The trend-follower's paradise. The stock begins to show strong upward momentum. A clear uptrend is established with higher highs and higher lows. This is where the majority of profits are made in a bull market. | Participate in the uptrend. Aggressively look for long opportunities and avoid short positions. | | Stage 3 | Distribution: The toping process. After a prolonged uptrend, the stock loses momentum. "Smart money" begins to distribute their holdings to the public. The chart often shows a broadening or sideways pattern with increased volatility. | Exit long positions. This is a time to book profits and anticipate a potential move lower. | | Stage 4 | Decline: The bear market phase. A clear downtrend is established, with lower highs and lower lows. Fear and capitulation often dominate. This is the time to look for shorting opportunities. | Participate in short sales. Stocks in a Stage 4 decline are "guilty until proven innocent," meaning the path of least resistance is down. |

Shannon integrates his MTF method with (swing highs/lows, trendlines). A daily swing high broken on the 60-min carries more weight. Step-by-Step Execution Strategy A stock might be in

I can provide a step-by-step checklist to configure your layout for multiple timeframe analysis. Share public link

Analyze the price from major events (e.g., earnings, new highs, earnings report).

Moving averages are not predictive crystal balls; they are objective trend filters. Shannon popularized using specific moving averages tailored to specific trading styles to define trend health and dynamic support/resistance. Daily Chart Moving Averages (Swing Trading)

No matter how good a setup looks, Shannon reminds us that "certainties don't exist in the market".