Unlike a moving average, VWAP includes volume. Shannon champions —starting the calculation from a significant point (e.g., earnings release, swing high/low). He shows how VWAP from higher time frames acts as dynamic support/resistance on lower time frames.
is a foundational text in the trading community, known for its practical, "no-nonsense" approach to understanding market cycles and price action. Core Methodology: The "Top-Down" Approach
By using multiple time frames, a trader can identify high-probability "confluence zones." These are areas where a support level on the weekly chart aligns with a trend line on the daily chart and a moving average on the hourly chart. Shannon posits that when these factors converge, the risk/reward ratio shifts heavily in the trader's favor. He emphasizes that trading is not about being right all the time, but about minimizing losses when wrong and maximizing gains when right. MTFA provides the map to find these low-risk entry points.