The "go-to" average for swing traders to buy pullbacks. 50-day SMA: Defines the medium-term health of the trend.
Brian's true magic weapon was the . While others looked at standard moving averages, Brian anchored his VWAP to significant market events—like earnings gaps, clinical trial results, or major swing highs and lows.
Shannon’s educational background includes a BA in Business Management from Merrimack College, and he holds Series 7, 24, and 63 licenses. In 2013, he earned the prestigious designation. He has also appeared on CNBC and other financial media outlets, teaching tens of thousands of traders through his books, blog posts, and video updates.
Think of the AVWAP as a "source of truth". While moving averages track time, the VWAP tracks . It is the one indicator that accounts for both price and volume simultaneously. The Anchored version allows you to attach a VWAP line to any significant past event, creating an objective framework for determining who is in control. The "go-to" average for swing traders to buy pullbacks
: This is the tide. It dictates the overall direction and long-term momentum.
By doing so, traders can:
Brian Shannon’s method teaches that you are not trying to predict which way the wind will blow, but simply to read the current direction of the stream at all levels—from the gentle flow of the eddy to the powerful surge of the current. By aligning your trades with the dominant trends on higher timeframes and using the precision of lower charts and the objective value levels of the AVWAP, you move beyond guesswork and into a world of high-probability, structured analysis. While others looked at standard moving averages, Brian
Technical analysis is a method of analyzing financial markets by studying charts and patterns to predict future price movements. One of the key concepts in technical analysis is the use of multiple time frames to gain a deeper understanding of market trends and make more informed trading decisions. In this write-up, we will explore the concept of using multiple time frames in technical analysis, and how it can be applied to improve trading performance.
| Stage | Name | Description | Trading Bias | |-------|------|-------------|--------------| | | Accumulation / Bottoming | Price stabilizes after a downtrend; moving averages flatten and tangle | Neutral – wait for confirmation | | Stage 2 | Markup / Uptrend | Price rises; moving averages align upward; higher highs and higher lows | Bullish – look for long entries | | Stage 3 | Distribution / Top | Price stalls; moving averages lose their upward alignment; volatility increases | Neutral – reduce risk | | Stage 4 | Decline / Downtrend | Price falls; moving averages point downward; lower highs and lower lows | Bearish – look for short entries |
Buy the breakout on the 5-minute chart. Place your stop-loss immediately below the intraday higher low. He has also appeared on CNBC and other
Trading success, as Shannon frames it, is all about finding and exploiting an edge. If you cannot find an advantage in a particular stock or timeframe, there is simply no reason to be involved.
When the longer‑term, intermediate, and short‑term timeframes are all aligned, the probability of a successful trade increases dramatically.