Shannon recommends using three time frames for most traders (especially swing and position traders):
| Time Frame | Role | Example Period | |------------|----------------------------|------------------| | Long term (higher) | Trend filter – defines direction | Daily or Weekly | | Intermediate (medium) | Setup – identifies entry zone | 4-hour or 60-min | | Short term (lower) | Trigger – precise entry timing | 15-min or 5-min | Shannon recommends using three time frames for most
For day traders, shift everything down: 60-min (long), 15-min (medium), 2-min (short). This is called “Trend Alignment” – your probability
A divergence on the daily chart is strong; the same divergence on the 5-minute chart is noise. Shannon teaches how to filter false signals by checking if the divergence is confirmed on the next higher time frame. when timeframes are conflicting (e.g.
A perfect setup in Shannon’s world is when all timeframes are aligned:
This is called “Trend Alignment” – your probability of success skyrockets.
Conversely, when timeframes are conflicting (e.g., daily bullish but 4H bearish), Shannon recommends waiting. Either the daily will pull the 4H back up, or the 4H will reverse the daily. Only trade when they confirm.