One of Shannon’s signature tools is anchored VWAP — not just the daily VWAP, but VWAP anchored from significant events (earnings, breakouts, lows). He argues that institutions watch VWAP, and so should you.
On page 57 (of the original edition), Shannon likely introduces the concept of using VWAP across timeframes:
Shannon emphasizes that no single timeframe gives a complete market picture. By analyzing multiple timeframes (e.g., monthly, weekly, daily, hourly), traders can: One of Shannon’s signature tools is anchored VWAP
Before understanding the book, you must understand the author. Brian Shannon is the founder of Alphatrends and is widely considered one of the most reputable voices in technical analysis. With decades of experience in the markets, Shannon is known for his pragmatic, no-nonsense approach to trading. He doesn’t rely on esoteric indicators or "get-rich-quick" schemes; instead, he focuses on price action, market psychology, and risk management.
His book, Technical Analysis Using Multiple Timeframes, is often referred to as a modern classic. It is a distillation of his trading strategy, designed to help traders isolate high-probability setups while minimizing risk. Markets are fractal
Divergence (price making a higher high but RSI or MACD making a lower high) is powerful — but only when confirmed across timeframes.
Example:
Markets are fractal. A trend on a weekly chart contains dozens of daily cycles, hundreds of 1-hour moves, and thousands of 1-minute fluctuations. Trading without multi-timeframe analysis is like navigating a highway using only a rearview mirror. hundreds of 1-hour moves
Shannon’s key argument: Your trading timeframe determines your entries and exits, but higher timeframes determine your bias.