This lower timeframe (such as a 5-minute or 15-minute chart) is used strictly to fine-tune entry and exit points, allowing you to minimize your risk exposure (stop-loss distance). Aligning the Timeframes
Shannon frequently utilizes the Anchored Volume Weighted Average Price (AVWAP). This tool calculates the average price of a stock weighted by volume, starting from a specific psychological event. serve as excellent anchor points.
Brian Shannon is not merely an author; he is a battle-hardened market veteran. A Chartered Market Technician (CMT), Shannon began his journey in the industry at a young age, making his first stock purchase at just 13 years old. He has over three decades of experience, having worked for major firms including Lehman Brothers and MarketWise Securities before founding his educational platform, . Shannon is globally recognized as a leading expert on the Volume Weighted Average Price (VWAP) indicator, having been instrumental in bringing the Anchored VWAP (AVWAP) tool to major charting platforms.
: After a long, tiring decline, the selling pressure subsides. "Smart money" (institutions) begins to quietly accumulate positions. Price action becomes choppy and range-bound. The downtrend is broken, but a new uptrend hasn't yet begun. Strategy : "Anticipate Long / Cover Short." This is a neutral period offering no clear edge for a trend trader. It is a time to watch, not to trade aggressively.
Used on daily charts to determine institutional bias and overall market health.
Sometimes the daily chart looks heavily bullish (Stage 2), but the weekly chart looks extended and is entering a Stage 3 Distribution zone. When timeframes conflict, the higher timeframe always wins. If the weekly chart is overextended, reduce your position sizes and tighten your targets on daily swing trades, as macro selling pressure could arrive at any moment. 2. Anticipating Catalyst Events
To help apply this strategy to your current routine, let me know:
The Volume Weighted Average Price (VWAP) is a critical tool in this framework. Anchoring the VWAP to significant market events—such as earnings releases, all-time highs, or major swing lows—reveals the true average psychological cost basis of the market participants involved since that specific event. 3. Support and Resistance Across Timeframes
This lower timeframe (such as a 5-minute or 15-minute chart) is used strictly to fine-tune entry and exit points, allowing you to minimize your risk exposure (stop-loss distance). Aligning the Timeframes
Shannon frequently utilizes the Anchored Volume Weighted Average Price (AVWAP). This tool calculates the average price of a stock weighted by volume, starting from a specific psychological event. serve as excellent anchor points.
Brian Shannon is not merely an author; he is a battle-hardened market veteran. A Chartered Market Technician (CMT), Shannon began his journey in the industry at a young age, making his first stock purchase at just 13 years old. He has over three decades of experience, having worked for major firms including Lehman Brothers and MarketWise Securities before founding his educational platform, . Shannon is globally recognized as a leading expert on the Volume Weighted Average Price (VWAP) indicator, having been instrumental in bringing the Anchored VWAP (AVWAP) tool to major charting platforms. This lower timeframe (such as a 5-minute or
: After a long, tiring decline, the selling pressure subsides. "Smart money" (institutions) begins to quietly accumulate positions. Price action becomes choppy and range-bound. The downtrend is broken, but a new uptrend hasn't yet begun. Strategy : "Anticipate Long / Cover Short." This is a neutral period offering no clear edge for a trend trader. It is a time to watch, not to trade aggressively.
Used on daily charts to determine institutional bias and overall market health. serve as excellent anchor points
Sometimes the daily chart looks heavily bullish (Stage 2), but the weekly chart looks extended and is entering a Stage 3 Distribution zone. When timeframes conflict, the higher timeframe always wins. If the weekly chart is overextended, reduce your position sizes and tighten your targets on daily swing trades, as macro selling pressure could arrive at any moment. 2. Anticipating Catalyst Events
To help apply this strategy to your current routine, let me know: He has over three decades of experience, having
The Volume Weighted Average Price (VWAP) is a critical tool in this framework. Anchoring the VWAP to significant market events—such as earnings releases, all-time highs, or major swing lows—reveals the true average psychological cost basis of the market participants involved since that specific event. 3. Support and Resistance Across Timeframes