In the world of trading, there is a famous saying: "The trend is your friend." But for most traders, the real struggle isn't finding a trend; it’s knowing which trend to follow. Is the stock "bullish" because it’s up today, or "bearish" because it’s down over the last month?
The central theme of Shannon’s work is that no single timeframe provides a complete picture. Instead, he advocates for a "top-down" approach where the higher timeframe serves as the "tide" that guides the overall market direction. Technical Analysis Using Multiple Time Frames by Brian
– Upside momentum stalls; price moves sideways as "smart money" begins to exit. Stage 4: Decline (Markdown) Instead, he advocates for a "top-down" approach where
If you’d like, I can also point you to to access the book, such as: Technical Analysis Using Multiple Time Frames by Brian
: A critical tool Shannon uses to determine the average price paid for a stock based on both volume and price.