By Brian Shannon Technical Analysis Using Multiple Link Direct

Know exactly where a trade idea becomes invalid based on structural support and resistance. 2. The Four Stages of the Market Cycle

A signature element of Shannon’s work is his integration of the Anchored Volume Weighted Average Price, or AVWAP. While traditional moving averages only account for time and price, the VWAP incorporates volume, offering a much more accurate representation of where the true balance of supply and demand lies. Shannon expanded on this by "anchoring" the VWAP to significant market events, such as earnings releases, gap ups, or major swing highs and lows. When combined with multiple timeframe analysis, the anchored VWAP becomes a powerful tool. A trader can see not just where support and resistance lie on a daily chart, but also how intraday volume and price interact with those key levels, providing a level of clarity that traditional indicators cannot match.

A sustained uptrend characterized by higher highs and higher lows. by brian shannon technical analysis using multiple link

In practice, Shannon uses multiple AVWAPs on his charts to identify where large institutions are benchmarking their performance. A compression between two AVWAP levels creates a perfect setup—a tightening range where a breakout in either direction is imminent.

For a deeper dive into his methods, look for Brian Shannon's educational material on AlphaTrends. Know exactly where a trade idea becomes invalid

It seems like you are researching advanced market mechanics to or perhaps preparing a comprehensive educational curriculum for a financial blog. Would you like assistance developing a custom trading checklist based on Shannon's rules to help you screen stocks more efficiently during market hours? Share public link

Disclaimer: This article is for educational purposes. Trading financial markets involves risk. Please consult a financial advisor before trading. While traditional moving averages only account for time

Favored by Shannon because it divides the 6.5-hour trading day into six equal periods, unlike the standard hourly chart. Key Concepts and Tools

In his seminal work, Technical Analysis Using Multiple Timeframes Brian Shannon

For Shannon, the market is "innocent until proven guilty." If the daily chart is in , you assume it will remain so and only look for long trades. You only consider a shift in your bias once there is conclusive evidence of a change in structure.

But when I "zoomed out" to the , I saw a different story. The daily chart was sitting right at a prior resistance zone (a previous VWAP anchor from three months ago) and the 8 EMA was sloping down .