This three-step process ensures the trader is buying dips in an uptrend—statistically one of the highest probability setups in existence—rather than chasing momentum or catching falling knives.
Once you know the market is bullish on the Daily chart, drop down to the Execution timeframe (e.g., the 1-hour or 4-hour chart). --- Technical Analysis Using Multiple Timeframes By Brian
Technical Analysis Using Multiple Timeframes by Brian: The Ultimate Guide to Market Alignment This three-step process ensures the trader is buying
Looking at too many timeframes (e.g., 1-min, 5-min, 15-min, 1-hour, 4-hour, Daily). Stick to three. Stick to three
Here, Shannon looks for specific setups. If the macro trend is bullish, the intermediate timeframe might show a "pullback." Instead of buying at the top, the disciplined trader waits for price to dip into a value area, such as a previous resistance turned support, or a retest of a moving average.
Brian argues that every timeframe tells a story, but no single story contains the whole truth.