: Sustained downtrend where short positions are favored.
Move to a 10-minute or 15-minute chart over the last 5 to 20 days. Look for a temporary pullback or a consolidation pattern within that larger uptrend.
If you're interested in learning more about technical analysis using multiple timeframes, here's a basic guide:
MTFA teaches traders to look at the market through a hierarchical lens: : Sustained downtrend where short positions are favored
Short selling receives dedicated attention in Shannon’s framework. He provides clear guidance on how to “borrow stock from a broker to sell short and buy back at a lower price to profit,” always using a buy stop to limit risk. Key principles include:
Apply the 3-timeframe analysis (Daily -> 60m -> 15m) on stocks that are currently making new 52-week highs.
The highest probability setup occurs when all three timeframes point in the same direction. If you're interested in learning more about technical
Brian Shannon breaks down price movement into four distinct cyclical stages: Accumulation:
The stock experiences a temporary multi-day pullback. It declines toward a known support level or a key moving average. This is your setup.
If you want to implement this methodology in your own trading, tell me: The highest probability setup occurs when all three
Protect profits. Raise trailing stop-losses and avoid entering new long positions. Stage 4: The Markdown Phase
+-----------------------------------+ | Macro Trend | | (Daily/Weekly Chart) | | Determines General Direction | +-----------------+-----------------+ | v +-----------------+-----------------+ | Intermediate Trend | | (Hourly Chart) | | Locates Key Structures | +-----------------+-----------------+ | v +-----------------+-----------------+ | Execution Timeframe | | (5-Minute/15-Minute) | | Triggers Entry and Stop Loss | +-----------------------------------+ 1. Define the Macro Trend (Daily/Weekly)
The “Exit Long/Anticipate Short” phase. After an extended uptrend, institutional players begin distributing their holdings to retail buyers. The action plan here is to existing long positions and begin anticipating short-selling opportunities.