A signature concept popularized by Brian Shannon is the use of the . Unlike traditional moving averages, the AVWAP allows traders to anchor a volume-weighted price line to a specific psychological event, such as: Earnings releases All-time highs or lows Major gap-up or gap-down days
Start with the to determine the current market stage. Look for the location of the price relative to the 20-day and 50-day Volume Weighted Average Price (VWAP) or Moving Averages. Only look for long setups if the daily trend is in Stage 2. 2. Locate Intermediate Structure
Shannon argues that traders often fail because they only look at one chart. If you only look at a 5-minute chart, you might think a stock is crashing. However, if you look at the daily or weekly chart, that "crash" might actually be a (a potential buying opportunity). Conversely, a breakout on a 5-minute chart might be a bull trap if the higher timeframe chart is in a downtrend. A signature concept popularized by Brian Shannon is
Technical Analysis Using Multiple Timeframes Hardcover – 2008
A period of sideways movement following a downtrend where "smart money" builds positions. Only look for long setups if the daily trend is in Stage 2
The framework is built on the idea that looking at different "magnification levels" allows traders to see what others miss. Amazon.com: Technical Analysis Using Multiple Timeframes
Price moves sideways in a range after a prolonged downtrend. If you only look at a 5-minute chart,
Brian Shannon ’s core methodology focuses on identifying high-probability setups by aligning trends across different timeframes. While many sites claim to offer "free PDF" downloads, these are often unofficial reports, summaries, or potentially unsafe links; the authoritative work is the hardcover book Technical Analysis Using Multiple Timeframes . Core Philosophy: The Four Market Stages
What is your typical (day trading, swing trading, or long-term investing)? Which technical indicators do you currently rely on?
An anchored VWAP acts as a dynamic psychological floor or ceiling where institutional buyers step back in.