A key component of Shannon's framework is identifying where a stock sits within its market cycle. He categorizes price action into four distinct stages:
Shannon’s approach is built on the principle that different traders look at different "clocks," and the best opportunities occur when all these participants are in agreement. He typically watches five timeframes simultaneously to see how they interplay: Long-term (Weekly):
The trend on the intermediate timeframe should align with the trend of the long-term timeframe. 3. The "VWAP" - Volume Weighted Average Price
A key component of Shannon's framework is identifying where a stock sits within its market cycle. He categorizes price action into four distinct stages:
Shannon’s approach is built on the principle that different traders look at different "clocks," and the best opportunities occur when all these participants are in agreement. He typically watches five timeframes simultaneously to see how they interplay: Long-term (Weekly): A key component of Shannon's framework is identifying
The trend on the intermediate timeframe should align with the trend of the long-term timeframe. 3. The "VWAP" - Volume Weighted Average Price A key component of Shannon's framework is identifying