The moving averages slope upward. Your lower timeframe execution strategy during Stage 2 should focus exclusively on buying pullbacks or trading breakout continuations. Stage 3: Distribution (The Top)
Zoom into the 65-minute chart to evaluate the last 2 to 3 weeks of price action. Look for a low-risk pattern. If the daily chart is in an uptrend, you want to see the 65-minute chart experiencing a orderly, low-volume pullback to a key support level or an AVWAP line. Step 3: Wait for the Micro Trigger (5-Minute Chart)
The goal is not to predict the future but to identify the path of least resistance. Shannon emphasizes that "price is the only thing that matters," reducing complex analysis to actionable price action. Understanding the Three Key Timeframes The moving averages slope upward
In the fast-paced world of trading, confusion is the enemy. Have you ever looked at a daily chart and seen a clear uptrend, only to switch to a 5-minute chart and see what looks like a crash? This dissonance is one of the biggest reasons traders fail.
| | Cons | | :--- | :--- | | Clarity: Written in plain English with minimal jargon. | Dated Examples: Published in 2008, some chart examples are old, though the principles remain timeless. | | Visuals: Includes clear color charts to illustrate points. | Not for Fundamental Traders: Purely technical; does not cover earnings or company valuation. | | Structure: Very organized, logical progression of ideas. | Basic Indicators: Focuses mostly on price action and volume; doesn't cover complex indicators like RSI/MACD in depth (which can actually be a pro for purists). | Look for a low-risk pattern
In multiple timeframe analysis, VWAP acts as a dynamic support/resistance level on all timeframes, particularly the daily and intraday charts. 4. Key Concepts from Brian Shannon’s Methodology A. The "Anchored VWAP" (AVWAP)
The daily chart (high timeframe) still showed price above the 20-day SMA. The 4-hour chart was holding the 50-period SMA. Nothing had broken structurally. He held. Shannon emphasizes that "price is the only thing
The next morning, $CORQ gapped up on earnings. Marco resisted the urge to chase. Instead, he pulled up the .
Align with the dominant market trend.
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You cannot discuss Brian Shannon’s technical methodologies without highlighting the . Unlike a standard moving average, which only factors in time and price, VWAP incorporates volume, revealing the true average price paid by market participants.