: The asset breaks lower into a sustained downtrend. How to Apply Multiple Timeframes
Shannon’s mantra is that "price is the only thing that pays". His risk management strategy includes:
The foundational premise of Shannon’s methodology is that the market moves in trends across various time compressions simultaneously. To maximize the probability of a successful trade, a trader must ensure these timeframes are in harmony. Shannon categorizes timeframes into three distinct roles: : The asset breaks lower into a sustained downtrend
This article is for informational and educational purposes only and does not constitute financial advice. Trading securities and other financial instruments involves significant risk of loss. You should consult with a qualified financial professional before making any investment decisions.
: Identifies the intermediate trend and the current market cycle stage (accumulation, markup, distribution, or decline). To maximize the probability of a successful trade,
| Method | Cost | Pros | |--------|------|------| | | ~$50–70 | Full charts, updates, lifetime access | | Check your local library | Free | Interlibrary loan possible | | Audible audiobook | 1 credit (~$15) | Great for commuters | | Shannon’s own website (alphatrends) | Varies | Includes video examples & current markets | | Used book (eBay / AbeBooks) | $20–40 | Often like-new condition |
Moving averages slope sharply upward, acting as support. You should consult with a qualified financial professional
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Your stop-loss should always be placed right below the structural failure point on your execution chart, rarely risking more than 1-2% of total account capital.
The stock finds a bottom and moves sideways. Moving averages flatten out as institutional buyers quietly build positions.
Moving averages slope downward, acting as heavy overhead resistance. Action: Short sell or stay in cash. Avoid "buying the dip." 3. The Three-Timeframe Hierarchy
