For bearish markets, reverse the logic:
– The stock is bottoming out and moving sideways as big players slowly buy in.
dictate the macro trend and market structure. by brian shannon technical analysis using multiple link
[Daily Chart: Identify Trend] ➔ [Hourly Chart: Spot Pattern] ➔ [15-Min Chart: Trigger Entry]
Shannon is the key popularizer of the Anchored VWAP (AVWAP), calling it the "adoptive father" of the indicator. A standard VWAP is a measure of the average price a security has traded at throughout a single day. But the genius of an anchored VWAP is that you can start the calculation from any significant point in the past. For bearish markets, reverse the logic: – The
To filter noise and accurately define trends across multiple timeframes, Brian Shannon relies heavily on specific moving averages. Rather than focusing on complex, lagging oscillators, his charts are remarkably clean.
Mastering the Market: A Deep Dive into Technical Analysis Using Multiple Timeframes by Brian Shannon A standard VWAP is a measure of the
The price breaks out from the accumulation phase, beginning a sustained uptrend characterized by higher highs and higher lows. This is the most profitable stage for long positions. Stage 3: Distribution
Shannon's methodology is built on a few key, powerful tools that work together:
To put this into practice, he recommends managing a series of charts simultaneously to see the "big picture" while fine-tuning entries and exits. In an Amazon biography, it's noted that Shannon commonly uses five timeframes at once: a weekly chart, a daily chart, a 30-minute, a 15-minute, and a five-minute chart. This allows him to answer a critical question: When they are aligned, the probability of a successful trade is thought to increase significantly.