By ensuring that a short-term trade aligns with the broader market direction, traders significantly increase their win rates. Key Concepts in Shannon's Framework
A single time frame chart often gives an incomplete market perspective. A 5-minute chart may show an uptrend, while the daily chart reveals a dominant downtrend. Without context, traders risk entering trades against the larger trend. Multiple time frame analysis addresses this by systematically reviewing the same asset across different chart intervals to align risk and direction. By ensuring that a short-term trade aligns with
Select your primary trading timeframe. This is the chart you will use to execute entries and exits, and to manage your risk. As a starting point, you must "plant your flag" in one set of timeframes, stick to it, and measure the results. Without context, traders risk entering trades against the
Stocks do not move in a straight line. A stock can look bearish on a 5-minute chart but remain strongly bullish on a daily chart. Multiple timeframe analysis teaches traders to: Define the primary trend using longer-term charts. Use intermediate charts to identify setups and patterns. This is the chart you will use to
Determines the overall direction of the market (e.g., Weekly or Daily chart).
Is the stock in a Stage 2 Markup? Is it above a rising 20-day and 50-day moving average? If yes, proceed.