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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Episode notes
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.
Anchor Only To Crowd-Significant Events
- Anchor VWAP only to significant market events that matter to the crowd, not to random past dates or your personal buy price.
- Use anchors on gaps, earnings, Fed events or any supply/demand shock that impacts many participants.
