In Shannon’s methodology, if price is above VWAP on the Daily chart, the bulls are in control. If price retests that VWAP on the 60-minute chart and bounces, that is a "Shannon-approved" high-probability entry. Anchor VWAP to a significant event—the day of earnings, the day of a Fed announcement, or the start of a major breakout. Watch how price respects that level for weeks to come. The Cardinal Sin: Over-optimizing One of the best warnings Shannon gives is about "analysis paralysis."
Once the Daily is bullish and the 60-minute is at support, you drop to the 15-minute chart to look for . You are looking for a "reversal of the pullback"—specifically, a higher low or a bullish moving average crossover. In Shannon’s methodology, if price is above VWAP
If you have ever bought a stock because it was "exploding" on the 5-minute chart, only to watch it reverse and trap you at the high, you understand the pain of tunnel vision . Watch how price respects that level for weeks to come
Enter . In his landmark book, Technical Analysis Using Multiple Time Frames , Shannon doesn't just teach you indicators; he teaches you how to align the "wind" of the higher time frames with the "rudder" of the lower time frames. If you have ever bought a stock because
Only take long signals on the lower time frames if the Daily chart is in an uptrend (higher highs/lows or above key VWAP/EMAs). 2. The Intermediate Time Frame (The Value Zone) Time Frame: 60-minute (Hourly) Chart Question to answer: Where is the low-risk entry?
Welcome to some games that have similarities to the above game: