The highest probability setup occurs when all three timeframes point in the same direction.
Shannon warns against the "cute counter-trade." Yes, you might catch a 15-minute bounce in a daily downtrend, but you are swimming against a rip current. Multiple timeframe analysis removes guesswork. The highest probability setup occurs when all three
Sometimes the lower timeframe is noisy (just before news or during lunch hour in equities). Shannon advises: If the lower timeframe has no clear structure, do not trade. Step away until the first 30 minutes of a new session or after a volatility contraction. Shannon warns against the "cute counter-trade
If you were to distill the book into a single checklist for a Long trade, it would look like this: A unique aspect of Shannon's teaching is his
A unique aspect of Shannon's teaching is his focus on the 6-month market cycle.