: Used for fine-tuning entries and managing risk with precision. The Four Stages of the Market Cycle
While many traders use moving averages, Brian Shannon’s signature tool is . Standard VWAP resets every day. Anchored VWAP allows you to anchor the calculation to a specific major event—usually a significant swing low or a major breakout day. technical analysis using multiple timeframes brian shannon
Shannon advocates for a , moving from higher timeframes to lower ones to build a cohesive trading thesis: : Used for fine-tuning entries and managing risk
: A period of sideways consolidation where professional money quietly enters positions. Anchored VWAP allows you to anchor the calculation
Often the 4-hour or 1-hour chart, this acts as the bridge. It confirms whether the higher timeframe trend is stable or showing signs of exhaustion. Shannon looks for the intermediate timeframe to pull back within the higher timeframe trend. For example, in a daily uptrend, a 4-hour pullback to a key moving average or anchored VWAP offers the highest-probability setup.
A cornerstone of Shannon's analysis is the classification of market movements into four distinct stages:
– The uptrend stalls. Big players begin selling to latecomers, and price action becomes volatile and sideways. Stage 4: Decline