Shannon also warns against two common trading impulses that tend to destroy accounts: "don't buy the dip, and don't short the breakdown either". Instead, he advocates waiting for confirmation that buyers are in control before entering—buying "strength after the dip, when we know for certain buyers are in control, and setting stop losses below the most recent, or relevant lows".
"It tells us factually who's in control from any point in time," Shannon explained. "The market is anchored to that key event, be it the CPI or earnings reports or important highs and lows."
Brian Shannon’s " Technical Analysis Using Multiple Timeframes " provides a framework for trading by aligning short-term, intermediate, and long-term trends to improve probability and manage risk. By utilizing a top-down approach—evaluating daily, 60-minute, and 5-minute charts—traders can identify market stages and execute trades based on structural alignment rather than noise. Shannon also warns against two common trading impulses
One cannot discuss Brian Shannon’s technical analysis without addressing . While the PDF covers standard support/resistance, Shannon is a pioneer in popularizing Anchored VWAP for MTF analysis.
If there is one overarching lesson to take from Shannon's work, it is this: . There is no single "magic formula" or rigid rule. But by combining multiple timeframes to understand context, using anchored VWAP to measure supply and demand objectively, and always, always managing risk with defined stop-loss levels, a trader can tip the odds consistently in their favor. As Shannon himself puts it: "The market is anchored to that key event,
The book provides numerous practical examples and case studies of how to apply multiple time frame analysis to real-world trading scenarios. Shannon demonstrates how to:
Shannon divides the market analysis into a hierarchy of three specific roles for timeframes. This is often referred to as the "Tops-Down" approach. While the PDF covers standard support/resistance, Shannon is
While many traders discuss MTF in passing, few have broken it down as clearly as Brian Shannon in his classic book, Technical Analysis Using Multiple Time Frames . For over a decade, this PDF (now widely shared and studied) has been a cornerstone for price-action traders looking to align trend, momentum, and entries.
The AVWAP is essentially a traditional VWAP anchored to a specific date or event chosen by the trader, such as an earnings report, a major high or low, or the start of a new year. As Shannon has explained, it represents "the average price the business was transacted at from a certain point". Whereas a standard VWAP resets daily, an anchored VWAP allows traders to track the average transacted price since a specific event. The two books complement each other perfectly: the first teaches traders how to analyze markets across multiple timeframes, while the second provides the ideal tool—anchored VWAP—to execute that analysis with precision.
In the PDF, Shannon illustrates how price constantly "seeks" the anchored VWAP. It acts as a magnet. When price is far above it, traders expect a reversion. When price touches it in a healthy trend, it acts as support.
The PDF version of the book (5.3 MB, 184 pages) is subtitled "A Complete Guide to Understanding Market Structure and the Psychology of Price Movement." The book is available for purchase through major retailers including Amazon, Barnes & Noble, AbeBooks, and other online booksellers. Be cautious of unauthorized free PDF download sites, as they may violate copyright laws.