Home Research COVID-19 Services Publications People Teaching Job Opening News Forum Lab Only

Technical Analysis Using Multiple Timeframes Brian Shannon < 8K • 4K >

When analyzing the Intermediate Timeframe, Shannon looks for:

Shannon categorizes all price action into four distinct cyclical stages: Stage 1: Accumulation

A discussion of Brian Shannon’s methodology is incomplete without highlighting his pioneering work with the Anchored Volume Weighted Average Price (AVWAP). While traditional VWAP resets daily, the Anchored VWAP allows traders to manually select a specific, psychologically significant starting point in time to measure the average price paid based on volume.

If the daily chart is in a structural Stage 4 markdown, a trader should not look for long setups on shorter intervals. You want to trade in the direction of the dominant, larger trend. 2. The Intermediate Timeframe (The Setup) technical analysis using multiple timeframes brian shannon

Shannon argues that AVWAP acts as a "magnet" and a "line of control." When price is above a significant anchored VWAP, the bulls are in control because the average participant is in profit. When price breaks below it, those participants become sellers. By anchoring VWAP on different timeframes (e.g., a weekly anchor for the higher timeframe, a daily anchor for the intermediate), the trader can see exactly where institutional players are likely to defend prices or take profits. In Shannon’s hands, AVWAP is not a magic line but a dynamic support/resistance zone validated by real volume.

Entry, stop, and target rules (practical guidance)

: A period of falling prices and panic selling. Key Technical Tools & Principles You want to trade in the direction of

core philosophy is simple: Price is the only thing that matters, but context is king.

Identifies key support and resistance zones, chart patterns, and localized trends. Charts Used: 60-minute or 10-minute charts.

Shannon uses VWAP as a dynamic magnet for price. In a healthy uptrend, price tends to find support at the VWAP line. Therefore, instead of chasing a price that has run away from the VWAP, Shannon waits for the price to pull back to the VWAP to enter a trade. Conversely, if the price breaks decisively below the VWAP in an uptrend, it signals a loss of institutional support, warning the trader to exit or tighten stops. When price breaks below it, those participants become

as taught by Brian Shannon is a comprehensive, logical approach to trading. By using higher timeframes for context and lower timeframes for timing, you can make smarter, more confident decisions. The key is patience: wait for the high-timeframe trend to align with your intermediate setup, and use the low-timeframe chart to enter only when the market proves you are correct.

While multiple timeframes provide the structure, Shannon relies on specific tools to identify "institutional truth."