Technical Analysis Using Multiple Timeframes Brian Shannon
In his 2023 book Maximum Trading Gains with Anchored VWAP , Shannon explains how to use AVWAP for a wide range of scenarios, including IPOs, short squeezes, gap analysis, and more, all while maintaining risk management as the top priority (which he calls "Job One").
This stage‑based thinking eliminates a tremendous amount of guesswork. Instead of asking, “Is this a good buying opportunity?” you first ask, If the answer is Stage 4, you don’t buy. Period.
The ultimate arbiter of the long-term trend (Stage 2 vs. Stage 4). Anchored VWAP (AVWAP)
Look at the higher timeframe to identify the next major structural resistance level (such as a previous peak or a descending higher-timeframe moving average) to set your profit targets. 6. Common Pitfalls to Avoid technical analysis using multiple timeframes brian shannon
By combining these indicators across timeframes, traders can manage risk more dynamically, placing stop-losses based on the market structure of the lower timeframe while aiming for targets defined by the higher timeframe. Amazon.com: Technical Analysis Using Multiple Timeframes
The highest-probability trades occur when multiple timeframes align in the same direction. For instance, a trader should look for a "markup" phase (Stage 2) on the daily chart while waiting for a low-risk entry signal on a 15-minute chart. The Role of Anchored VWAP (AVWAP)
Lower timeframes can be chaotic. By grounding your analysis in a higher timeframe, you avoid getting faked out by temporary volatility. In his 2023 book Maximum Trading Gains with
Because institutions watch these levels so closely, VWAP lines often act as . When price approaches VWAP during a healthy uptrend, buyers frequently step in. When price breaks decisively through VWAP, it signals a shift in the balance of power.
Represents short-term momentum. In a strong Stage 2 markup, the price should stay above this line.
: Identifies the primary trend and dominant market direction. Period
Goal: Add a multi-timeframe technical-analysis tool inspired by Brian Shannon’s approach (layered trend structure, high-probability trade selection, ATR-based stops, and market structure).
To effectively map out an asset, a trader should look at three distinct layers of time: TECHNICAL ANALYSIS USING MULTIPLE TIMEFRAMES
Never take a long day-trade or swing-trade on a 5-minute breakout if the daily chart is in a structural Stage 4 markdown. The macro trend will almost always crush the micro setup.