While I cannot reproduce Shannon’s book, the following piece synthesizes the essential principles he popularized—principles that have become foundational for many discretionary traders.
Shannon notes that the first pullback against a strong trend is usually a trap. If the market explodes higher on Monday, the first 15-minute red bar on Tuesday is not a "dip to buy." It is a sucker's bet. He waits for the second or third touch of a moving average on the medium time frame before committing capital. While I cannot reproduce Shannon’s book, the following
: Used to find more detail and pinpoint precise entry and exit signals once the primary trend is confirmed. While I cannot reproduce Shannon’s book