The "smart money" is selling to the "late-to-the-party" public. Tighten stops and take profits. Stage 4: Markdown The stock makes lower highs and lower lows. Action: Avoid or short sell. Do not "value hunt" here. ⚓ The Anchored VWAP (AVWAP)
– The breakdown. Sellers are in control, and the stock makes lower highs and lower lows. 2. The Multi-Timeframe Framework
Brian Shannon, CMT and founder of Alphatrends, addressed this critical failure in his foundational work, Technical Analysis Using Multiple Timeframes . His philosophy is not about predicting the future, but about assessing probability and managing risk through . technical analysis using multiple timeframes brian shannon
In Shannon’s trading system, VWAP serves as the on intraday timeframes. The rule is straightforward: you don’t buy until price reclaims VWAP while the intermediate trend is bullish. You don’t short until price loses VWAP while the intermediate trend is bearish.
Identify the exact entry point and set a protective stop. The "smart money" is selling to the "late-to-the-party"
Shannon is a pioneer in the use of the Anchored Volume Weighted Average Price (AVWAP), which he covers extensively in his subsequent work, Maximum Trading Gains with Anchored VWAP .
I can provide a concrete chart scenario tailored to your exact style. Action: Avoid or short sell
Shannon’s approach involves looking at larger timeframes to understand the major trend and then drilling down for precision. He typically watches five timeframes simultaneously to see their interplay.
This is one of Shannon’s most memorable (and actionable) rules. When the ribbon of moving averages is green and rising, you stay with the trend . When the ribbon is red and falling, you stay short or in cash.
Protect profits, tighten stop-losses, and avoid buying breakouts. Stage 4: Markdown (The Bearish Trend)
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