Stage 2: Markup (Uptrend) / \ / \ Stage 3: Distribution (Top) / \________ / \ ______/ \ Stage 4: Markdown (Downtrend) Stage 1: Accumulation (Base) \ / \___/ Stage 1: Accumulation
Identify which work best for swing vs. day trading .
This public link is valid for 7 days and shares a thread, including any personal information you added. This link or copies made by others cannot be deleted. If you share with third parties, their policies apply. Can’t copy the link right now. Try again later. Stage 2: Markup (Uptrend) / \ / \
If the daily chart is in a clear uptrend (higher highs, higher lows, above a rising 200-period moving average), you only look for long setups on the lower timeframes. Countertrend bounces are for scalpers or those with very tight risk controls—Shannon generally avoids them.
Shannon advises traders to "anticipate rather than react to price movement." Reacting is an emotional response; anticipation is a skill built from structured analysis. By using multi-timeframe analysis, a trader can anticipate where price is likely to move based on the confluence of evidence, rather than being constantly surprised by each new bar. This link or copies made by others cannot be deleted
Many of Shannon's core concepts have been encoded into practical tools and indicators used by traders today.
Detail the specific (like VWAP) mentioned in his work. Try again later
By using multiple time frames, traders and investors can:
While many technical analysis books focus on exotic indicators, Shannon’s PDF work emphasizes simplicity and volume-backed price action.
While his first book laid the foundation, Shannon is also widely known for his expertise in the . This tool allows traders to see the average price paid since a specific event (like an earnings report or a major low).
Defines the "Big Picture." Is the stock in a primary Stage 2 uptrend?