Standard VWAP resets daily. Shannon popularized the use of (starting from a significant high, low, or event day).
Note: For Shannon’s specific chart examples, annotated setups, and detailed case studies, please refer to his original book Technical Analysis Using Multiple Timeframes (Marketplace Books, 2008). The above represents a conceptual distillation of the method he teaches.
If the price is safely above a rising 20-day EMA, the markup phase is strong. Standard VWAP resets daily
The trader does not buy at the daily moving average. Instead, they watch the 60-min chart. They wait for price to print a "higher low" relative to the daily low, for the 5-period EMA to cross above the 21-period EMA, and for volume to expand on an up candle. Trigger: Enter long.
A cornerstone of Brian Shannon’s methodology is the Anchored VWAP (AVWAP). Unlike a standard daily VWAP, an Anchored VWAP allows traders to measure the average price paid by market participants starting from a specific, psychologically significant event. The above represents a conceptual distillation of the
Brian Shannon’s Technical Analysis Using Multiple Timeframes outlines a strategy for identifying market trends through a four-stage cycle, emphasizing the alignment of trends across long-term, intermediate, and short-term charts. The methodology, often using Anchored VWAP, focuses on entering trades during Stage 2 markup phases by aligning shorter-term execution with broader weekly trends. Explore more details about this approach via this YouTube presentation . Trading Using Multiple Timeframe Analysis
Where is the nearest horizontal support and resistance level? Instead, they watch the 60-min chart
Shannon utilizes moving averages (particularly the 20-day, 50-day, and 200-day EMA/SMA) not just for direction, but to identify areas where the market is likely to find support or resistance during a trend pullback. D. Volume and Anchored VWAP (AVWAP)
This alignment acts as a filter, forcing you to sit on your hands during low-probability setups and strike only when the odds are stacked in your favor.
Most novice traders commit a fatal error: they pick a single timeframe and trade it in isolation. If they are a day trader, they watch the 1-minute chart. If they are a swing trader, they watch the daily chart. Shannon argues that this is like driving a car while looking only at the hood ornament—you miss the road ahead.