Shannon frequently references the 65-minute chart rather than the standard 60-minute chart. Because the U.S. stock market is open for 390 minutes a day, a 65-minute chart divides the day into exactly six equal candles, eliminating the awkward, incomplete 30-minute end-of-day candle found on 60-minute charts. 3. The Trigger Timeframe (5-Minute/10-Minute Chart)
: A sideways "topping" phase where ownership shifts from strong to weak hands. Stage 4: Decline
Shannon urges traders to avoid binary questions like "Are you bullish or bearish?" Instead, he argues that the answer always depends on the timeframe. A stock might show a declining long-term trend while simultaneously exhibiting a short-term upward bounce. Understanding these nuances is the key to successful analysis.
Shannon’s golden rule is: Indicators are secondary; price action is primary. technical analysis using multiple timeframes brian shannon
Brian Shannon’s approach to technical analysis is built on a foundational market truth: A market that looks heavily overbought on a 5-minute chart might simply be breaking out of a pristine, bullish consolidation pattern on a daily chart. Conversely, a stock that looks cheap on a 15-minute chart could be caught in a vicious daily downtrend, turning a perceived "discount" into a value trap.
When 5-minute, 1-hour, and daily charts all point in the same direction, you can trade with conviction.
AI responses may include mistakes. For financial advice, consult a professional. Learn more How to use Multi-Time Frame Analysis in trading - Dhan A stock might show a declining long-term trend
Moving sideways; flat or churning moving averages; institutional buying.
Before you buy one share, you must zoom out. Ask the following questions on the highest timeframe:
The upward trend stalls. The asset moves sideways again, forming a topping pattern (like a Head and Shoulders or double top). Before you buy one share
Risk management & psychology
Even experienced traders struggle with multi-timeframe analysis. Here is how Brian Shannon addresses the biggest pitfalls: