The stock moves sideways after a long decline. It is "basing." While not yet ready for a long position, this is where you build your watchlist.
Arthur sat in the dark, breathing slowly. The stock moves sideways after a long decline
The trend turns lower. Lower highs and lower lows become the norm. This is a "no-touch" zone for longs and a playground for short-sellers. The Power of VWAP The trend turns lower
This guide explores the core philosophy of Shannon’s approach, specifically focusing on the stages of the market cycle and how to align your trades for maximum probability. Table of Contents The "Top-Down" Approach Why Single Timeframe Analysis Fails The Four Stages of the Market Cycle Stage 1: Accumulation (The Bottoming Process) Stage 2: Markup (The Profitable Uptrend) Stage 3: Distribution (The Top) Stage 4: Markdown (The Downtrend) Core Technical Indicators and Tools Moving Averages (The 10, 20, 50, and 200-day) Volume Weighted Average Price (VWAP) Support and Resistance Dynamics Aligning the Timeframes Identifying the Primary Trend (Daily/Weekly) Finding Entry Points (Hourly/15-Minute) Managing Risk (The 5-Minute Chart) Executing the Trade The Concept of "Buy High, Sell Higher" Determining Stop-Loss Placement Profit Taking and Trailing Stops Psychology and Risk Management Embracing Objectivity The Importance of Position Sizing Conclusion: Putting it All Together The Core Philosophy: Alignment is Edge The Power of VWAP This guide explores the
A stock might look like a "buy" on a 5-minute chart because it's breaking out of a small base, but if the daily chart is in a structural downtrend (Stage 4), that breakout is likely a "bull trap." By using multiple timeframes, you ensure that the "wind" of the larger trend is at your back. The Four Stages: Your Market Map