By Brian Shannon Technical Analysis Using Multiple Link ((full))

The Trap of the Single Chart: Why You Need Multiple Links (Timeframes) to See the Real Trend

Accumulation: A period of consolidation after a decline. Smart money is buying. Characterized by tight price action and declining volatility. Strategy: Prepare for breakout; avoid shorting.
Markup (Uptrend): The bullish phase. Higher highs and higher lows. Characterized by momentum and expanding volume. Strategy: Buy the dips.
Distribution: A period of consolidation after an advance. Smart money is selling to retail. Characterized by choppiness and false breakouts. Strategy: Take profits; avoid buying.
Markdown (Downtrend): The bearish phase. Lower highs and lower lows. Strategy: Short rallies or stay in cash.

A foundational element of Shannon’s strategy is understanding the four stages every market moves through: Stage 1: Accumulation by brian shannon technical analysis using multiple link