A sustained uptrend characterized by higher highs and higher lows. This is the most profitable stage for long positions.
Focuses on the current market cycle stage—such as accumulation or markup—to determine the overall direction. A sustained uptrend characterized by higher highs and
Price moves sideways again as "smart money" begins selling to latecomers, often forming topping patterns. A sustained uptrend characterized by higher highs and
This theory explores how periods of low volatility (the "squeeze") often precede high-volatility "releases" or breakouts. Practical Implementation A sustained uptrend characterized by higher highs and
The central thesis of Shannon's approach is that price action on a single chart can be misleading. By examining a security across multiple timeframes, traders gain a clearer picture of the primary trend and can use smaller timeframes for precise entries and risk management.