Building on his multiple timeframe framework, Brian Shannon developed the . This is arguably the most powerful tool in his arsenal, and it's the focus of his subsequent book, Maximum Trading Gains with Anchored VWAP .
The asset breaks out of the accumulation zone. Price makes consecutive higher highs and higher lows. The asset trades cleanly above its rising moving averages. This is the optimal environment for long positions. Stage 3: Distribution
Zoom into the 60-minute chart to find localized support and resistance lines. Look for chart patterns like bull flags, cup-and-handles, or simple pullbacks to a key moving average. You want to see the 60-minute chart consolidating or pulling back within the broader daily uptrend. Step 3: Trigger the Trade on the Micro Chart Building on his multiple timeframe framework, Brian Shannon
Brian Shannon’s Technical Analysis Using Multiple Timeframes (2008) is built on the philosophy that "only price pays"
Once you confirm the daily trend is bullish, zoom in to the 65-minute chart. Look for a temporary pullback or a consolidation pattern (like a wedge or flat base). This indicates short-term profit-taking within a resilient, longer-term uptrend. You are waiting for this minor counter-trend to exhaust itself. Step 3: Trigger on the Lower Time Frame Price makes consecutive higher highs and higher lows
As a pioneer of the Anchored VWAP, Shannon emphasizes anchoring this indicator from significant events (like high-volume earnings gaps) to understand who is in control (buyers or sellers) since that moment. 3. Time Frame Alignment For a swing trade, the goal is to align the trend: Check the Weekly: Is the overall trend up?
Never place your stop where everyone else does (round numbers, obvious swing lows). Use a tick or two below to avoid being hunted. Stage 3: Distribution Zoom into the 60-minute chart
Brian Shannon, a well-known technical analyst and author of "Technical Analysis Using Multiple Timeframes," popularized this structured approach. His core philosophy emphasizes that understanding the market structure across various intervals allows traders to enter positions with lower risk and higher probability of success. The Core Philosophy of Brian Shannon
A lower time frame (e.g., 5-minute/15-minute) gives you a precise entry to manage risk. Key Pillars of Brian Shannon's Approach 1. The Four Stages of Market Cycle
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