This is where the most significant gains are made. The price breaks out of accumulation and begins making higher highs and higher lows.
Brian Shannon’s mantra, "Only price pays," serves as the backbone of his technical analysis. He argues that while indicators like RSI or MACD can provide context, they are derivatives of price. To trade successfully, one must focus on the primary source: price action across different time horizons. The Four Stages of the Market Cycle This is where the most significant gains are made
by Brian Shannon is widely considered a foundational text for traders looking to understand market structure, price action, and the psychology behind trend development. He argues that while indicators like RSI or
Shannon emphasizes that no single timeframe tells the whole story. A "top-down" approach is essential for high-probability setups: Shannon emphasizes that no single timeframe tells the
Used to find patterns (like flags or cups and handles) that align with the daily trend.
A period of sideways price action where the previous downtrend has ended, and "smart money" begins to build positions.
Used to identify the overall trend and major support/resistance levels.