Technical Analysis Using — Multiple Timeframes Brian Shannon

Instead of calculated daily from the market open, an Anchored VWAP starts at a specific psychological event—such as an earnings release, an all-time high, a major low, or a gap day. It measures the true average price paid by all market participants since that event. If the price breaks above an AVWAP anchored to a major swing high, it indicates that the sellers who controlled the market since that peak are officially losing control. Bringing It Together: A Practical Trading Scenario

Weekly or Daily charts for swing traders; Daily or 60-minute charts for day traders.

Allows entry at highly precise locations on short-term charts, meaning stop-losses can be small while profit targets remain large.

Specifically, identifying key Support and Resistance levels. Time: The duration of the trend (long-term vs. short-term). Volume: The "fuel" that confirms a trend's strength. How to Use Them Together: technical analysis using multiple timeframes brian shannon

If the weekly chart is in a decisive downtrend, you are not a "value investor"; you are a "falling knife catcher." Shannon teaches that it is statistically more profitable to buy pullbacks within an uptrend than to try to catch bottoms in a downtrend.

, provides a systematic framework for understanding market structure and aligning trades with the dominant trend. Here is how you can use Shannon’s methodology to elevate your trading game. 1. Understanding the Four Stages of Market Cycles

Volatility increases significantly as buyers try to push the price higher but face heavy institutional selling. Instead of calculated daily from the market open,

: A period of sideways consolidation where professional money quietly enters positions.

Instead of buying blindly, the lower timeframe shows the micro-breakout or reversal candlestick that triggers the trade. This allows for incredibly tight, precise stop-losses. The Role of Moving Averages and Anchored VWAP

This article explores the core principles of Shannon’s philosophy, teaching you how to analyze price action across different timeframes to increase your trading confidence and profitability. The Philosophy of Multiple Timeframe Analysis Bringing It Together: A Practical Trading Scenario Weekly

While Shannon emphasizes price action above all else, his methodology relies on a few specific indicators to confirm trends across timeframes:

: Used to fine-tune entries, manage risk, and spot precise triggers.

The asset breaks below Stage 3 support. It begins making lower highs and lower lows.