CURSOS
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.
: Daily charts refine the context and timing for swing traders.
– The market is flat or "basing" after a decline. Buyers and sellers are in equilibrium. Stage 2: Markup
Technical Analysis Using Multiple Timeframes: Brian Shannon’s Structured Approach
You can enter at the start of a new, smaller-term trend that aligns with the larger-term trend, allowing for smaller stops.
Always trade in the direction of the higher timeframe trend. If the weekly and daily charts are in Stage 2, look for intraday pullbacks to buy. Anticipate, Don't Predict:
For Brian Shannon, the is not just another indicator—it is the "absolute truth" regarding the relationship between a stock's supply and demand. Unlike a traditional moving average, which weights each time period equally, VWAP accounts for volume, reflecting the average price that traders have paid for a security over a given period. VWAP is the value that large institutional investors frequently use as a trade signal. Shannon refers to VWAP as the "ultimate sentiment indicator" because it allows a trader to look at any point on a chart and determine, factually, who is in control—buyers or sellers. The traditional VWAP resets daily, but its true power emerges when you anchor it.
core philosophy is simple: Price is the only thing that matters, but context is king.
The four stages are:
