Confessions Of A Market Maker Episode #101: Brian Shannon- Talks AVWAP & New Book
Feb 3, 2023
Brian Shannon, a full-time trader and author known as Mr. Only Price Pays, shares his insights on trading strategies and mental wellness. He discusses his journey of writing, linking trading to athletic performance, while promoting clarity through sobriety. The conversation dives into the significance of the Anchored VWAP as a tool for understanding market behavior and stock trends. Brian also emphasizes the psychology behind trading, including the importance of risk management and supply-demand principles. A must-listen for trading enthusiasts!
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Anchored VWAP Reveals Event-Based Control
- Anchored VWAP measures cumulative supply and demand from a user-chosen start point like earnings or Fed events.
- It shows whether buyers or sellers control price relative to that event and often acts as support/resistance.
Wait For Price Confirmation Before Entering
- Wait for price confirmation at an anchored VWAP before entering; don't buy automatically on the touch.
- Buy momentum off a confirmed bounce and place stops under the most recent relevant higher low.
How Anchored VWAP Reached Charting Platforms
- Brian attributes reintroducing anchored VWAP to his work with TC2000 after rediscovering the concept in 2003.
- He says TC2000 built point-and-click Anchored VWAP and that helped spread its adoption.
