Shannon defines a trend based on price structure rather than indicators. Higher Highs (HH) and Higher Lows (HL).
If you’ve spent any time in the markets, you know that a single chart rarely tells the whole story. To truly understand price action, you need to see the "big picture" and the "fine print" at the same time. This is the core philosophy behind Brian Shannon’s acclaimed book, Technical Analysis Using Multiple Timeframes . Shannon defines a trend based on price structure
The price breaks support levels and begins making lower highs and lower lows. Shannon strongly warns against "buying the dip" during Stage 4. Instead, this phase calls for short-selling or remaining in cash. Choosing Your Timeframes To truly understand price action, you need to
A cornerstone concept in the book is that all markets move through a predictable, continuous cycle driven by human psychology and supply and demand. Shannon breaks down these trends into : Amazon.com: Technical Analysis Using Multiple Timeframes Shannon strongly warns against "buying the dip" during
: Volume is typically low as institutional buyers quietly build positions. Stage 2: Markup (The Uptrend) Price Action : Higher highs and higher lows.
This "3-Step Process" ensures you are never fighting the "smart money" and are always trading with the prevailing current.