Shannon is a pioneer in the use of the Anchored Volume Weighted Average Price (AVWAP). Unlike a standard moving average, the AVWAP allows a trader to "anchor" the price to a specific event, such as an earnings report, a gap up, or a major swing low. Key indicators used in the book include:
This is where the power of multiple timeframe analysis comes in. It gives traders the ability to put conflicting market messages into context. Shannon advocates that the market is fractal; the principles learned on one timeframe are applicable to every other timeframe. By stepping back and looking at the bigger picture, a trader can: