He focuses on identifying "Higher Highs" and "Higher Lows" for uptrends, and "Lower Highs" and "Lower Lows" for downtrends. A trend reversal is only acknowledged when this structure breaks on the relevant timeframe. 3. Anchored VWAP (AVWAP)
Momentum slows down. The asset moves sideways again as institutional investors take profits and transfer shares to retail traders.
Examine the daily chart. Is the asset trading above a rising 20-day and 50-day Simple Moving Average (SMA)? If yes, the asset is in Stage 2, and you should look exclusively for buy (long) opportunities. Step 2: Locate the Pullback He focuses on identifying "Higher Highs" and "Higher
Follow verified market educators, CMT (Chartered Market Technician) program materials, and reputable financial blogs.
Brian Shannon’s 2008 book, Technical Analysis Using Multiple Timeframes , provides a comprehensive framework for aligning intraday market movements with higher-trend market structure to filter out noise. The methodology focuses on four market stages (Accumulation, Markup, Distribution, Decline), anchored VWAP, and price action to confirm trends. A detailed summary of these core principles is available at Scribd . Anchored VWAP (AVWAP) Momentum slows down
to find the primary trend—the "big brother" that dictated the market's true direction. Then, he dropped to the Hourly chart
Price breaks out of the Stage 1 base on high volume. This is the most profitable stage for long traders. Is the asset trading above a rising 20-day
Use the 1-hour chart to identify a pullback into a support level (like a 50-day moving average or an Anchored VWAP).
Look for a temporary pullback or a bullish flag pattern resting right on top of a key structural support line or an Anchored VWAP.
The book is a highly-regarded guide for traders, focusing on understanding market structure through the alignment of multiple timeframes. Where to Access or Buy the Book