If you want to master these setups, I can provide more details on specific parts of this strategy. Provide a . Explain how to set profit targets using trailing stops. Share public link
A trade is considered when price touches a weak or dynamic zone inside a strong zone.
on popular trading platforms. Detail the 1-2-3 reversal pattern for entries.
Brian Shannon's " Technical Analysis Using Multiple Timeframes If you want to master these setups, I
: Used for fine-tuning entries, managing risk, and spotting specific price action signals. Key Indicators and Tools :
Stage 2: Advancement (Uptrend) /\ /\ / \ / \ Stage 3: Distribution (Top) / \______/ \ ________ / \ / \ ______/ \___/ \ / \ Stage 4: Decline (Downtrend) / \ / / \___/ Stage 1: Accumulation (Base) Stage 1: Accumulation (The Base)
Shannon's strategy incorporates VWAP into his market structure analysis to filter out low-quality opportunities. For instance, a trader might only consider a long entry when the price reclaims the VWAP line in an uptrend, as this indicates that value is being re-established. Many trading platforms and communities have developed custom indicators based directly on Shannon's book, designed to visually represent market stages, trend alignment, and VWAP levels for easy scanning. Share public link A trade is considered when
Stocks move through repeatable cycles. Recognizing these stages prevents you from buying a dying stock or shorting a breakout.
The key is to be consistent and rule-based. You need to strictly define the three (or more) timeframes you will analyze and stick to your plan. A classic Shannon-inspired stack might look like this:
– A sustained uptrend characterized by higher highs and higher lows. designed to visually represent market stages
Price moves sideways in a range after a prolonged downtrend.
Shannon's approach is as much about protecting capital as it is about finding entries. He famously uses the mantra for uptrends and "Guilty until proven innocent" for downtrends. This means you stay with the established trend until there is clear price action evidence that it is changing. You don't try to predict the top or bottom.
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