Shannon recommends anchoring VWAP to several key points:
Don’t buy at the absolute bottom hoping for a reversal. Wait for the ribbon to turn and price to reclaim value levels. It’s better to buy higher with confirmation than lower with hope.
Keeps traders from reacting frantically to minor intraday fluctuations that don't alter the bigger picture.
Imagine you’re driving down a highway using only your rearview mirror. That’s how most traders operate—they look at a single timeframe and make decisions based on a narrow snapshot of price action. But what happens when the daily chart looks bullish while the weekly chart has been rolling over? You end up fighting the broader trend, and the market has a cruel way of punishing traders who ignore its larger narrative. technical analysis using multiple timeframes brian shannon
2. The Intermediate Timeframe: The Market Structure (Hourly / 65-Minute Chart)
| Month | Price | | --- | --- | | Jan | $50 | | Feb | $55 | | Mar | $60 | | ... | ... | | Dec | $100 |
This article explores the core principles of Shannon’s approach, focusing on how aligning multiple timeframes can lead to higher-probability trades. The Core Philosophy: "Trend is Friend" Across Timeframes Shannon recommends anchoring VWAP to several key points:
While Brian Shannon utilizes moving averages (like the 50-day and 200-day), he is famously known as a champion of the .
: It represents the average price paid since a specific event (e.g., earnings, IPO, or a major low). Support/Resistance
The most critical takeaway from Brian Shannon’s work is that no single timeframe tells the whole story. A stock might look bullish on a 5-minute chart but be crashing into a massive resistance level on a daily chart. Keeps traders from reacting frantically to minor intraday
Avoid heavy long positions; wait for an official breakout. Stage 2: Markup (The Bullish Trend)
Adopting this structured approach provides several advantages: