Serves as the institutional line in the sand for medium-term health. 200-day SMA: Determines the long-term macroeconomic trend. Step-by-Step Swing Trading Strategy Using MTFA
Support fails, and lower highs and lower lows emerge. The price drops below declining moving averages. This is the stage where short sellers profit and long traders must stay away. Brian Shannon’s Signatures: AVWAP and Moving Averages The Anchored VWAP (AVWAP)
Shannon's methodology relies on a handful of specific tools, which he believes provide the most reliable signals.
When conducting multiple timeframe analysis, anchoring a VWAP to significant market events provides incredibly powerful support and resistance levels:
A stock can be in a downtrend on a daily chart but a strong uptrend on a 5-minute chart. Multiple timeframe analysis removes confusion by defining your trading horizon. Higher Timeframes Control the Trend
If the price remains above an AVWAP anchored to a major earnings gap-up, the buyers from that day are still in control and defending their positions. Step-by-Step Execution Framework
Stage 2: Advancing / \ / \ Stage 3: Distribution / \____ _______/ \ Stage 1: Accumulation \ \ Stage 4: Declining 1. Stage 1: Accumulation Price moves sideways after a long downtrend.
Identifies support/resistance and the actionable setup.
: High volatility, wide price swings, and a flattening moving average after a long uptrend.
– Pinpoints entry timing. Wait for price to show reversal signals (e.g., a bullish hammer at daily support) within the context of the intermediate trend. This frame answers: When should I pull the trigger?