Never trade against the direction of the daily chart trend. The Setup Locator (Intermediate Timeframe) Interval: 1-Hour or 4-Hour chart.
A foundational element of Shannon’s book is the concept that all assets move through four distinct market cycles or stages. Recognizing these stages across multiple timeframes allows traders to position themselves on the side of institutional money. Stage 1: The Accumulation Phase Never trade against the direction of the daily chart trend
The foundational premise of Brian Shannon's approach is that no single timeframe tells the whole story. A stock can look bearish on a 5-minute chart but remain in a powerful uptrend on a daily chart. Start with the to determine the current market stage
Start with the to determine the current market stage. Look for the location of the price relative to the 20-day and 50-day Volume Weighted Average Price (VWAP) or Moving Averages. Only look for long setups if the daily trend is in Stage 2. 2. Locate Intermediate Structure 2. Locate Intermediate Structure