The book moves away from the idea of a "magic indicator" and focuses on and Market Structure .
Apathy and disbelief. Smart money is quietly buying.
Traders are taught to use a "top-down" approach:
– Volatile sideways action as big players exit. The book moves away from the idea of
Shannon is not just a theorist — he’s a practical trader. His book, Technical Analysis Using Multiple Timeframes (often abbreviated TAMT), focuses on:
: A trading signal or trend considered significant on a shorter timeframe (e.g., 15-minute chart) might be more convincing if it's confirmed by a similar signal on a longer timeframe (e.g., daily chart).
Ensure the moving averages are sloped in the direction of your intended trade. Anchor Your VWAP Major Swing Lows or Gap Ups Traders are taught to use a "top-down" approach:
By using higher-timeframe charts to define the overall trend, traders can place more accurate stop-loss orders on lower-timeframe charts.
Wait for a localized breakout or a reversal pattern. Entry occurs when momentum shifts back in the direction of the daily uptrend.
While not the main focus of his earliest work, Brian Shannon is a pioneer in using the Anchored VWAP. This tool calculates the average price of an asset weighted by volume, starting from a specific psychological event (like an earnings report, a market high, or a market low). It acts as incredibly strong dynamic support and resistance. Why You Should Avoid "Free PDF 57 Hot" Links Ensure the moving averages are sloped in the
Used to identify the overall trend and major support/resistance levels.
Shannon is heavily influenced by Volume Spread Analysis (VSA). He does an excellent job explaining how to read price bars in relation to volume.