Brian Shannon’s Technical Analysis Using Multiple Timeframes
: Used to see the "bigger picture," determine the primary trend, and identify major supply or demand areas.
Brian Shannon is one of the original pioneers of Anchored VWAP, having discovered its potential in 2003. Unlike a standard VWAP, which resets daily, an AVWAP can be anchored to a specific point, such as a significant high, low, or earnings gap. Shannon explains that the tool reveals "what the average trader has paid for a particular equity over a given period."
Disclaimer: This article is for educational purposes and does not constitute financial advice. Always backtest strategies before trading with real capital. Shannon explains that the tool reveals "what the
Key Concept: When price breaks above resistance, that level often becomes new support. C. Moving Averages
Shannon breaks the market down into its most basic structural components. He emphasizes identifying the swing highs and swing lows to determine the trend:
If you want to tailor this framework to your own trading style, tell me: What do you trade most? (Stocks, crypto, forex?) Shannon often works with three timeframes
Shannon, a celebrated independent trader and founder of AlphaTrends, published his acclaimed book to bridge the gap between theory and practice. Howard Lindzon of The StockTwits Edge noted that "about one-third of the traders featured in this book point to Brian as a mentor who has had the biggest impact on their careers". More than a decade later, Shannon continues to refine and teach his methodology, which remains a cornerstone for swing traders and active investors worldwide. This guide explores the complete framework—from its core philosophy to practical implementation—so you can learn to see the markets as a professional.
Price breaks below key support levels. Moving averages turn downward and act as overhead resistance. This is the primary zone for short positions or cash preservation. Structure the Multiple Timeframe Hierarchy
Look for a healthy consolidation or a minor pullback within that Stage 2 trend. The price should find support near a rising 10-day EMA or an Anchored VWAP from a recent earnings gap. Step 3: Zoom into the 5-Minute Chart (The Execution) confirms momentum shifts
First published in 2008, this text shifts the focus away from lagging indicators and towards the objective reality of price action, market structure, and the cyclical flow of capital. By organizing market data across concurrent charts—such as weekly, daily, and intraday views—Shannon shows traders how to drastically reduce risk while maximizing profit potential. 1. The Core Philosophy of Multiple Timeframe Analysis
The 5-day MA serves multiple functions: it provides a dynamic support/resistance level, confirms momentum shifts, and offers an entry trigger when price pulls back to the moving average within a trending market. The highest-probability setups occur when price trades above both the 5-day MA and the AVWAP, while also aligning with the trend on higher timeframes.
: Shannon uses different timeframes as "magnification levels" for the same asset.
Shannon often works with three timeframes, each a multiple of the next (e.g., 4x to 6x ratio). A common setup: