The upward momentum stalls. The stock enters a choppy, volatile sideways range. Institutional investors begin selling their shares to late-coming retail traders. The moving average flattens out, and wild price swings become common. Stage 4: The Markdown Phase

A foundational element of Shannon’s strategy is understanding the four stages every market moves through: Stage 1: Accumulation

The core principle of MTF is the across different time horizons. Shannon argues that the most powerful and reliable trading opportunities arise when multiple timeframes are pointing in the same direction.

The floor gives way. The stock breaks below its distribution support level, initiating a severe downtrend characterized by lower highs and lower lows. The moving averages slope downward, acting as a ceiling of resistance against any temporary bounces. 3. Implementing Multiple Timeframe Analysis

Unlike a standard VWAP that resets daily, an Anchored VWAP allows a trader to choose a specific starting point in time—such as a major earnings report, a market low, an IPO date, or a trend breakout.

He primarily utilizes the 10, 20, 50, and 200-day moving averages to define trend direction and potential support zones.

Looking at too many timeframes (e.g., 1-minute, 3-minute, 5-minute, 15-minute, hourly, 4-hour, daily). Stick to three distinct links.

If you are trading a 5-minute chart, your "higher link" should be the 1-hour. Do not try to link a 5-minute entry to a Weekly stop loss. The distance is too great. Your risk will be astronomical.

Shannon integrates several tools to validate these cycles and trends:

Start today. Open your Daily chart. Anchor your VWAP. Link your 60-minute. And wait for the signal. That is the Shannon way.

This is your starting point. The daily chart establishes the overall health of the asset. You look for major support and resistance levels, long-term moving averages, and the primary trend direction. If the daily chart is in a structural downtrend, buying intraday bounces is statistically dangerous. 2. The Hourly Chart (The Tactical Setup)