Maximizing Trading Profits with Anchored VWAP

Luiggi Trejo
3 min readJul 7
Photo by Gülfer ERGİN on Unsplash

Maximizing Trading Profits with Anchored VWAP — The Ultimate Combination of Price, Time & Volume is a book written by Brian Shannon, CMT. This book is designed to guide traders in enhancing their trading outcomes by utilizing the Anchored VWAP (AVWAP) indicator. The book is divided into four parts, each serving a specific purpose:

Part I: Establishing the Foundation of AVWAP

In Part I, Shannon provides an explanation of the fundamentals of AVWAP, including its calculation process and its ability to identify support and resistance levels. Additionally, he emphasizes the significance of risk management and demonstrates how AVWAP can be used to set stop losses.

Part II: Utilizing AVWAP for Informed Trading Decisions

Part II delves into comprehensive instructions on employing AVWAP to make well-informed trading decisions. Shannon covers a wide array of topics, such as entry and exit strategies, trade management, and adapting AVWAP to different market conditions.

Part III: Advanced Strategies with AVWAP

Part III explores advanced AVWAP strategies, such as utilizing AVWAP for trading IPOs, short squeezes, and gaps. Shannon also shares insights on using AVWAP across various time frames.

Part IV: Real-life Case Studies

In Part IV of the book “Maximum Trading Gains With Anchored VWAP,” Brian Shannon presents case studies that demonstrate the effective utilization of AVWAP for executing profitable trades. These case studies encompass a diverse range of stocks, including both large-cap and small-cap stocks.

One of the case studies Shannon discusses focuses on his trade on Apple (AAPL) in 2017. During that time, AAPL was trading within the $150 to $160 range. Utilizing AVWAP, Shannon identified a support level at $152.50. He then initiated a long position on AAPL when the price broke above $152.50. This trade proved to be profitable as AAPL eventually reached a high of $170.

Another case study Shannon presents centers around his trade on Tesla (TSLA) in 2019. TSLA was trading within the $200 to $250 range at the time…

Luiggi Trejo

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