Though popularized further in his later work, the concept of understanding anchored price and volume starts with the core multiple-timeframe mechanics laid out here. Shannon teaches traders to look at where the majority of volume has transacted to find true equilibrium points in the market. 4. Risk Management and the "Stop-Loss"
Stage 2: Markup (Uptrend) /\ /\ / \ / \ / \______/ \ / \ Stage 3: Distribution (Top) / \_______ / \ _______/ \ Stage 4: Markdown (Downtrend) Stage 1: Accumulation (Bottom) \ / \ / \____/ Stage 1: Accumulation (The Bottom) Though popularized further in his later work, the
This is the most profitable phase to hold long positions. Buy pullbacks to support or breakout continuations on lower timeframes. Stage 3: The Distribution Phase Risk Management and the "Stop-Loss" Stage 2: Markup
: Sustained downtrend where short positions are favored. Though popularized further in his later work, the