This is the essence of Shannon’s method:
Shannon suggests a between timeframes. For example: This is the essence of Shannon’s method: Shannon
Published: May 2026
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– Weekly or Daily chart Provides directional bias. Answers: Are buyers or sellers in control over weeks/months? If you are long based on a daily
Shannon also applies the method to exits. If you are long based on a daily uptrend and 4-hour support, you do not exit on a 5-minute dip. Instead, watch for the 4-hour chart to break below its 50-period MA and the daily to close below the 20 SMA. Move to the lower timeframe only to tighten stops.
You’ve identified a stock – let’s call it XYZ – in a clear uptrend on the daily chart (price above 50 SMA, higher highs and higher lows). Now you want to enter on a pullback.