Brian Shannon (respected trader, founder of AlphaTrends)
Shannon explains that AVWAP is an "objective measure" that large institutional investors frequently use as a trade signal. In his framework, the AVWAP acts as a magnet for price and a dynamic line of support or resistance. By anchoring it to a key swing low or high, you can objectively assess whether a breakout is legitimate and where to place your stops. : Stay in cash or look for short-selling opportunities
: Stay in cash or look for short-selling opportunities. Implementing the Multi-Timeframe Framework For example, if the weekly chart is in
The core lesson of Brian Shannon's technical analysis framework is that . Indicators, news stories, and market rumors are secondary to objective price structure. if the weekly chart is in
For example, if the weekly chart is in , the daily chart is in Stage 2 (Uptrend) , and a 30-minute chart is also in Stage 2 , then the trading odds are heavily stacked in your favor. This is often called a "confluence of trends". When these timeframes are not aligned, the market is sending mixed signals, and Shannon advises either staying in cash or trading with a much smaller size.