Trading in the direction of the trend from larger timeframes—while aligning with the timeframe you intend to hold—is the foundation of his approach. Without that alignment, traders are essentially gambling on noise rather than trading with institutional flow.
By analyzing multiple timeframes, you align your trades with the broader market momentum. This process reduces risk and dramatically improves your win rate. The Three-Timeframe Rule Trading in the direction of the trend from
: Buy pullbacks to key moving averages on intermediate timeframes. 3. Phase 3: Distribution Trading in the direction of the trend from
Shannon organizes market movement into four distinct stages: Stage 1: Accumulation Trading in the direction of the trend from