Technical Analysis Using Multiple Time Frame By Brian Shannonpdf Work ((link)) -
Identify stocks making a new 3-month high above a rising 50-day moving average.
Shannon breaks the market down into its most basic structural components. He emphasizes identifying the swing highs and swing lows to determine the trend:
Churning, wide sideways ranges with high volatility. Identify stocks making a new 3-month high above
By anchoring the VWAP to these points, you can see the exact average price paid by all market participants since that major event occurred. When a stock pulls back to an Anchored VWAP from a major breakout point on a daily chart, and the 5-minute chart shows a bullish reversal pattern at that exact same level, you have found a highly confluent, low-risk trading setup. 5. Step-by-Step Swing Trading Execution Strategy
This systematic approach removes guesswork, replacing it with a set of objective rules for entry, management, and exit. By anchoring the VWAP to these points, you
Establishes the primary trend and identifies the current market stage.
Reduce position sizes in volatile or unfavorable market conditions. which resets daily
Brian Shannon is one of the original pioneers of Anchored VWAP, having discovered its potential in 2003. Unlike a standard VWAP, which resets daily, an AVWAP can be anchored to a specific point, such as a significant high, low, or earnings gap. Shannon explains that the tool reveals "what the average trader has paid for a particular equity over a given period."
Shannon’s genius is in recognizing that By aligning your entries with the larger flow, you reduce noise, lower stress, and improve the risk/reward ratio of every trade.
