Technical Analysis Using Multiple Time Frame By Brian Shannon.pdf ((new))

You cannot accurately read a 5-minute chart without knowing whether the 60-minute chart is trending up, down, or sideways. The higher timeframe acts as the gravitational field for the lower timeframe.

Traditional technical analysis typically involves analyzing a single time frame, such as a daily or weekly chart. However, this approach has several limitations. For example, a daily chart may not provide enough context to understand the broader market trend, while a weekly chart may not capture the short-term fluctuations in price. By relying on a single time frame, traders and investors may miss important information that could impact their investment decisions. You cannot accurately read a 5-minute chart without

Shannon argues that the "message of the market" is best understood by looking at the interplay between different chart periods. A primary timeframe (such as the daily chart) provides the broader trend context, while lower timeframes (such as 30-minute or 5-minute charts) are used to refine entry and exit points with precision. However, this approach has several limitations