Brian Shannon's core philosophy emphasizes that The Three-Tier Timeframe Framework
This alignment—trend up, pullback to value, trigger confirmation—creates what Shannon calls a “high-probability long entry.” Without all three frames agreeing, the trader remains in cash. A loss on the 5-min may be irrelevant to the daily
| Mistake | Shannon’s Fix | |---------|----------------| | Watch too many time frames (1-min, 5-min, 15-min, 30-min, 60-min, daily) | Stick to – one large, one medium, one small. | | Ignore the higher time frame after a loss | Always zoom out. A loss on the 5-min may be irrelevant to the daily. | | Enter because a lower time frame looks good, even though the daily is against them | Golden rule: Check the upstairs first . | | Use MTF analysis on low-liquidity stocks or crypto | MTF works best with liquid, institutionally traded assets. | structural daily Stage 2 uptrend.
Technical Analysis Using Multiple Timeframes provides practical strategies for both buying long and selling short, with a focus on risk management. institutionally traded assets.
Never let a 2-minute chart convince you to short an asset that is in a strong, structural daily Stage 2 uptrend.