Trader Mindset Brian Shannon - Using AVWAP Analysis For More Profitable Trading Setups
Apr 5, 2023
Brian Shannon, author of the influential book on Anchored VWAP, joins to discuss his innovative trading strategies. He dives into the integration of price and volume for successful trading and shares insights on mastering Anchored VWAP to identify key support and resistance levels. The conversation also highlights the crucial aspects of trading psychology, risk management, and effective money management techniques. Shannon further explains the dynamics of short squeezes and the impact of market events, offering invaluable guidance for traders to enhance their strategies.
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Anchored VWAP Reveals Market Control
- Anchored VWAP (Volume Weighted Average Price) uniquely combines price, volume, and time to show who controls the market, buyers or sellers.
- It's much more objective and accurate in identifying supply and demand levels than traditional indicators.
Anchor at Key Psychological Levels
- Always anchor VWAP from critical points like Federal Reserve announcements, earnings, or price gaps affecting psychology.
- This clarifies if the market is defending or rejecting these levels to interpret control and unfolding market sentiment.
Anchor VWAP at Earnings Reports
- Beginners should set VWAP anchors at major earnings reports that caused strong price reactions.
- This approach links familiar fundamentals with technical analysis to identify meaningful support or resistance levels.
