The central thesis is that "price has memory" and that every price move is part of a larger structural cycle. Shannon categorizes market movement into :
: A sideways move after a downtrend where "smart money" builds positions. The central thesis is that "price has memory"
: Shannon is a pioneer in using the Volume Weighted Average Price (VWAP) anchored to specific events (like a gap, high, or low) to find true support and resistance. Short Squeeze Dynamics Short Squeeze Dynamics Beyond chart patterns
Beyond chart patterns, Shannon emphasizes as the survival mechanism of a trader. He argues that stops should be placed logically based on where the technical thesis is proven wrong, rather than arbitrary percentage drops. By entering trades on shorter timeframes while supported by longer ones, traders can utilize tighter stop-losses, creating a superior risk-to-reward ratio. traders can utilize tighter stop-losses
