Happy trading – and always respect the higher timeframe.
Shannon posits that every market moves through a cyclical flow of capital, and identifying the current stage is critical for risk management. Happy trading – and always respect the higher timeframe
: He categorizes all price action into four cyclical stages: Happy trading – and always respect the higher timeframe
Here's a summary of the book:
: A sustained downtrend with lower highs and lower lows. Rallies are sold into, and short positions are favored. 2. Multi-Timeframe Framework Happy trading – and always respect the higher timeframe
– A sustained downtrend where the price stays below falling moving averages. This is the time to be short or on the sidelines. Key Tools in Shannon's Methodology
: Healthy advances should show increasing volume on rallies and decreasing volume on pullbacks.