In his second book, "Maximum Trading Gains with Anchored VWAP," Brian Shannon explores an advanced application of VWAP. Instead of starting at the beginning of the day, AVWAP allows the trader to anchor the calculation to any significant past event, such as an earnings report gap, a major high or low, or a breakout. AVWAP provides objective, absolute support and resistance levels that can be tracked for weeks or months after the anchor event.
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is a highly-regarded textbook focused on identifying low-risk, high-probability entry points by aligning trends across various time horizons.
The book鈥檚 primary objective is to teach traders how to identify high-probability setups by aligning different timeframes to minimize risk and maximize profit. 1. The Four Stages of Market Structure In his second book, "Maximum Trading Gains with
A breakout occurs, and the asset enters a sustained uptrend. This is the most profitable phase for long traders.
The price breaks out above the accumulation resistance line. The asset exhibits higher highs and higher lows. Moving averages slope upward, acting as dynamic support. This is the optimal environment for long positions.
Technical Analysis Using Multiple Timeframes by Brian Shannon This public link is valid for 7 days
If you want to apply these concepts to your current trading system, let me know: What do you currently use for your charts?
The primary advantage of MTFA is the ability to minimize risk. By using a lower timeframe for execution, you can place a tight stop-loss just outside a minor structural pivot, while targeting a profit target derived from the higher timeframe.
(46-56) 46. Use Tight Stops : Place stops at logical levels, such as the most recent swing low or below VWAP. 47. Profit Potential > Perceived Risk : Only take a trade if there is sufficient profit potential relative to the risk. 48. Position Sizing is Key : Size aggressively at well-defined inflection points with tight risk. 49. Use Stop Losses : Every single trade must have a pre-defined stop loss level. 50. Lower Risk to Maximize Long-Term Gains : Protecting capital is the first rule of trading. 51. Define Reward Before You Enter : Have an approximate price target where the stock has the potential to go. 52. Use a "Reversal Warning" Signal : A cross of the short-term trend below the intermediate-term trend signals a momentum loss and a cue to tighten stops. 53. Consider Options for Defined Risk : For bearish ideas in a bullish market, options can limit losses. 54. Stick to Liquid Stocks : Focus on roughly 1,100 liquid stocks to ensure you can get in and out with minimal slippage. 55. Build a Focused Watchlist : Do bottom-up work on weekends to build a list of about 150 names with emerging setups. 56. Choose Simplicity : Fewer charts and a clear process make controlling risk and your own psychology far easier. Can鈥檛 copy the link right now
Shannon argues that traders should primarily seek trades that align with Stage 2 (Markup) or Stage 4 (Decline), avoiding the noise and whipsaws of the neutral accumulation and distribution phases.
Whether you are a day trader obsessing over 5-minute candles or a swing trader looking at daily charts, Brian Shannon鈥檚 methodology provides the clarity required to align your trades with the dominant money flow. As Brian himself notes, success in the markets is not about being "right"; it is about . This book is your guide to mastering those cycles through the power of multiple timeframe analysis.
This phase begins when the price breaks out above the Stage 1 resistance level on heavy volume. The stock establishes a pattern of higher highs and higher lows. This is the ideal environment for long traders, as the path of least resistance is aggressively upward. 3. Stage 3: Distribution (The Top Phase)
It is important to note that The Amazon inventory for "Technical Analysis Using Multiple Timeframes" is primarily physical, and any Kindle version or free PDF found online is in violation of US copyright (Registration #TXu-1-573-293). The official version is a 184-page hardcover (later printings) that is highly visual, relying on color charts that are often lost in low-quality scanned PDFs. While the availability of a free PDF might be tempting, accessing such a file not only disrespects the author鈥檚 intellectual property but often results in a poor reading experience that lacks the clarity of the physical charts.
