| Mistake | Brian Shannon’s Correction | | :--- | :--- | | Using too many timeframes (e.g., 1-min, 5-min, 15-min, 1-hr, 4-hr, daily) | Stick to three primary timeframes that differ by a factor of ~4-6x (e.g., weekly, daily, 60-min). | | Entering because the LTF looks good, ignoring HTF | "The higher timeframe is your boss." Never fight the weekly trend for a swing trade. | | Placing stops based on arbitrary percentages | Place stops based on timeframe structure – below the last LTF swing low or a broken AVWAP. | | Using indicators as primary signals | Price and volume + AVWAP come first. Indicators like RSI are only for divergence confirmation on the HTF. |
A moving average that is flat means the stock is ranging. A moving average that is steep (45 degrees or more) means the trend is strong. You must align your trades with the steepest timeframe. technical analysis using multiple timeframes brian shannon
While many traders use moving averages, Brian Shannon’s signature tool is Anchored VWAP. Standard VWAP resets every day. Anchored VWAP allows you to anchor the calculation to a specific major event—usually a significant swing low or a major breakout day. | Mistake | Brian Shannon’s Correction | |
Using Multiple Timeframes with Anchored VWAP creates a "magnetic field" for price. Shannon teaches that when a stock pulls back
Shannon teaches that when a stock pulls back on the daily chart to the Weekly Anchored VWAP, it is an "A+ setup." You then zoom down to the hourly chart; if the hourly candle closes above the hourly VWAP, you enter.