Shannon defines a strict hierarchy. Never analyze a lower timeframe without first understanding the higher one.
| Timeframe | Role | Example Signal | | :--- | :--- | :--- | | Monthly / Weekly | Trend filter | Above 200 MA? Bullish. Below? Bearish. | | Daily | Value & support/resistance | VWAP slope up; price above VWAP = bulls in control. | | 4H / 1H | Trade setup zone | Pullback to daily VWAP or previous day’s high. | | 15min / 5min | Entry trigger | Bullish reversal candlestick pattern at key level. | Shannon defines a strict hierarchy
Rule: Do not take a 5min buy signal if the 4H and Daily are in a downtrend. You are fighting the ocean. Bullish
Shannon recommends using three time frames for most traders (especially swing and position traders): | | Daily | Value & support/resistance |
| Time Frame | Role | Example Period | |------------|----------------------------|------------------| | Long term (higher) | Trend filter – defines direction | Daily or Weekly | | Intermediate (medium) | Setup – identifies entry zone | 4-hour or 60-min | | Short term (lower) | Trigger – precise entry timing | 15-min or 5-min |
For day traders, shift everything down: 60-min (long), 15-min (medium), 2-min (short).
You don’t need a PDF to practice. Use any free charting platform (TradingView, ThinkorSwim, MetaTrader). Follow this sequence: