This stage begins with a breakout above the Stage 1 resistance. The price makes a series of higher highs and higher lows. The asset trades safely above its rising moving averages. This is the most profitable environment for long traders. Stage 3: Distribution
Only take long positions if the trend is up on both the weekly and daily charts.
The book is a treasure trove of actionable strategies. Among the many lessons, you will learn how to: This stage begins with a breakout above the
: Focuses on correct stop-loss placement for capital preservation and managing emotional decisions. Online Availability and Resources Official Sources
Included in the folder is the exclusive "14L" Cheat Sheet to help you spot high-probability setups instantly! This is the most profitable environment for long traders
Traders often fail because they analyze a single chart in isolation. A bullish setup on a 5-minute chart can be a trap if the daily trend is aggressively bearish. Shannon’s approach forces traders to look at the market through three primary lenses:
A fundamental rule in the book is that broken resistance becomes support, and broken support becomes resistance. When multiple timeframes show a role reversal at the exact same price level, it creates a high-conviction zone for entries. Practical Implementation: A Step-by-Step Trade Among the many lessons, you will learn how
: The most powerful moves occur when short-term, intermediate-term, and long-term trends align in the same direction.
Slowly but surely, Leo's trading began to transform. His losses decreased, and his profits grew. He no longer felt like a small boat tossed about by the stormy seas of the market; instead, he felt like a seasoned sailor, navigating the waves with skill and confidence.
Price breaks below support, entering a bear phase. Action: Participate short, avoid long.
: Pinpoints the exact entry and exit triggers to minimize risk and maximize the risk-to-reward ratio. This is often the 5-minute or 2-minute chart. 2. Master the Four Market Stages