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.
I can provide a concrete chart scenario tailored to your exact style.
Pinpoints the exact entry and exit execution to minimize risk. Charts Used: 5-minute, 2-minute, or 1-minute charts.
What you trade (Stocks, Crypto, Forex)?
Looking at too many timeframes (e.g., 1-min, 5-min, 15-min, 30-min, 1-hour, 4-hour, daily, weekly) will cause conflicting signals. Stick to three distinct tiers.
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Identifies key support and resistance zones, chart patterns, and localized trends. Charts Used: 60-minute or 10-minute charts. technical analysis using multiple timeframes brian shannon
The asset moves sideways in a choppy, defined range. The downward momentum has stopped, but upward momentum hasn't started.
Trend alignment is a prerequisite, not an optional suggestion. When timeframes diverge, the highest timeframe wins.
Mastering Technical Analysis Using Multiple Timeframes: Insights from Brian Shannon Shannon argues that AVWAP acts as a "magnet"
: An established uptrend where prices break out and climb significantly.
Used to determine the average price a security has traded at throughout the day, based on both volume and price. It acts as a benchmark for institutional traders.
To interpret this price action accurately, a trader cannot rely on a single timeframe. A stock might look incredibly bearish on a 5-minute chart while simultaneously resting on a major historical support level on the weekly chart. Multiple timeframe analysis solves this conflict by establishing a clear hierarchy of market trends, allowing traders to remain objective and avoid the trap of over-trading short-term noise. The Four Market Stages In Shannon’s hands, AVWAP is not a magic
