Technical Analysis Using Multiple Time Frame By Brian Shannon Pdf Free Download
Shannon defines a strict hierarchy. Never analyze a lower timeframe without first understanding the higher one.
| Timeframe | Role | Example Signal | | :--- | :--- | :--- | | Monthly / Weekly | Trend filter | Above 200 MA? Bullish. Below? Bearish. | | Daily | Value & support/resistance | VWAP slope up; price above VWAP = bulls in control. | | 4H / 1H | Trade setup zone | Pullback to daily VWAP or previous day’s high. | | 15min / 5min | Entry trigger | Bullish reversal candlestick pattern at key level. |
Rule: Do not take a 5min buy signal if the 4H and Daily are in a downtrend. You are fighting the ocean.
A perfect setup in Shannon’s world is when all timeframes are aligned:
This is called “Trend Alignment” – your probability of success skyrockets. Shannon defines a strict hierarchy
Conversely, when timeframes are conflicting (e.g., daily bullish but 4H bearish), Shannon recommends waiting. Either the daily will pull the 4H back up, or the 4H will reverse the daily. Only trade when they confirm.
A divergence on the daily chart is strong; the same divergence on the 5-minute chart is noise. Shannon teaches how to filter false signals by checking if the divergence is confirmed on the next higher time frame.
While you save up or wait for a library copy, you can start practicing MTF analysis using free resources:
| Time Frame | Condition | |------------|------------| | Daily | Above 20 & 50 EMA, rising, above VWAP anchored from last swing low. | | 4-hour | Pulls back to 20 EMA, holding above prior daily high. | | 15-min | Breaks above a small bull flag, volume expanding, RSI >50. | This is called “Trend Alignment” – your probability
Entry: 15-min close above flag high.
Stop: Below 15-min recent swing low (or below 4h 20 EMA).
Target: Next daily resistance or measured move.
Use this checklist on your next trade:
| Timeframe | Condition | Check (✔) | | :--- | :--- | :---: | | Weekly | Price > 50-week SMA | ☐ | | Daily | Price > Daily VWAP & VWAP sloping up | ☐ | | Daily | No major resistance for next 5% | ☐ | | 4H | Price pulling back to Daily VWAP or 20-EMA | ☐ | | 1H | Bullish reversal candle (engulfing, hammer) at level | ☐ | | 15min | Break of a minor downtrend line | ☐ | | Entry | Limit order 1-2 ticks above 15min high | ☐ | | Stop Loss | Below 1H reversal candle low | ☐ | | Target | Next weekly or monthly resistance level | ☐ |
If you check all boxes, your trade has institutional alignment. If you miss 3 or more, sit on your hands. A divergence on the daily chart is strong;
Unlike a simple moving average, VWAP includes volume. Institutions use VWAP to execute large orders without moving price too much. Shannon calls VWAP “the single most important intraday indicator.”
How Shannon uses VWAP across timeframes:
Trade example: Price is above daily VWAP (bullish). It pulls back to touch daily VWAP on the 1H chart and forms a hammer candle. That’s a low-risk buy entry.