Brian On NinjaTrader 05/18/25

In this blog post, we’ll dive deep into market resilience, price action, Brian’s signature VWAP (Volume Weighted Average Price) techniques, and actionable strategies for both day traders and swing traders. Whether you’re an active trader, or just trying to understand why the market seems to fly in the face of “bad news,” this is a post you won’t want to miss.

Let’s dig in! The Market’s Wild Resilience: Why “Bad News” Doesn’t Always Equal Down Moves It’s a market that just can’t be shaken. Week in and week out, traders watch “bad” headlines fly by—yet the S&P 500, Nasdaq, and their cousins keep grinding higher. How do you trade a market that seems to ignore logic? Brian points out that trying to reason with the market is a sure way to empty your trading account:

• Assigning logic to price leads to stubborn losses.
• News isn’t always the catalyst—it’s how price reacts to that news that matters.
• “Only price pays™.” This means you trade off what’s happening on the chart, not the latest headline.

Trading On Price Action, Not Opinions Let’s face it: everyone has a theory. But price, as Brian says, is the final arbiter. Be aware of the news, sure, and anticipate big catalysts like a Fed meeting. But always come back to the chart.

• Volatility creates opportunity—but only if you have a solid game plan.
• News is information, not a trading signal.
• Have a disciplined approach, especially when major events (Fed, OPEX, rollovers, holidays) are stacking up.

Futures Vs. Equities: Why Even Equity Traders Should Watch Futures Many traders stick to futures (ES, NQ) or equities (SPY, QQQ), but Brian stresses the value in watching both, especially when overnight volatility creates shifting VWAP levels. Here’s why:

• Days with big overnight moves show VWAP spreads between sessions—which impacts price behavior after the opening bell.
• Overlapping VWAPs from different sessions can act as hidden support/resistance—even if you’re trading stocks, not futures.

“Even if you’re an equity trader, look at both VWAPs—overnight and the NYSE open. Sometimes, one will nail the turning point. Other days, it’s the other. Don’t just pick one and ignore the rest!” Getting Nitty-Gritty: How Brian Sets Up His VWAP Anchors Brian’s approach isn’t about a single magic line—it’s about layering information so you see the true battle happening in price. The Key Anchors On Brian’s Chart

• Blue Line: VWAP from the week’s beginning (Sunday open, Globex session)
• Red Line: VWAP from the week’s high (most recent relevant high)
• Green Line: VWAP from yesterday’s NY close
• Black Line: VWAP from the regular NYSE open (9:30am ET)

10-Minute and 2-Minute VWAP setups: the difference between calm seas and volatile rapids.

• On longer timeframes (like 10min), these lines may be close together, but drop down to a 2-min chart and you’ll see the real gaps and overlaps after volatile overnight moves.
• A spread between overnight VWAP and regular session VWAP hints at unique opportunities for entries or reversals.

Anatomy of a VWAP Trade: Entry, Stops, and Targets Let’s break down Brian’s approach as the market unfolds:

1. Market gaps lower at the open.
2. Price starts below both the New York and overnight VWAP.
3. As soon as price reclaims these VWAP lines, that’s often a high-probability entry for a long trade.
4. Once price is above, look for pullbacks—never buy the dip blindly! Wait for a signal:
   • Let price pull back to the VWAP, then
   • Only buy as price moves back up (‘buy strength’ vs. ‘buy weakness’).

Managing Risk

• Think about your upside objective—where are potential resistance levels (e.g., week-to-date VWAP)?
• Sell some at your upside level, or tighten your stop to just under the last 2-minute bar low (for a day trade).
• If the setup looks good for a swing, be ready to zoom out and review the bigger picture.

“Only Price Pays™“: Why Reasoning With the Market is Expensive Brian’s been there—trying to “outsmart” the market based on news, narratives, or economic projections. Time after time, price action proved him wrong. “Arguing with the market is a very expensive argument. I got tired of those, so I just defer to price action and build my plan around that.” How To Handle Multiple VWAPs: Not All Anchors Are Created Equal Why Use Several Anchors?

• Some traders just throw on one session’s VWAP and call it a day.
• Brian layers:
  • Week-to-date VWAP (for the big picture)
  • High-of-week anchor (spotting reversals or exhaustion moves)
  • NYSE open (the most “watched” level by U.S. equity traders)
  • Overnight session VWAP (reveals hidden supply/demand from Globex)

“People always ask: which VWAP is ‘the most important’? The real answer: it depends on the day. Some sessions, one anchor is the turning point. Other times, they converge and act together. That’s why I want to see them all on my screen.” Advanced VWAP Tactics: Overlapping Anchors and Hidden Support

• On slow, low-range overnights, session VWAPs will almost lay on top of each other—no new info.
• But if you see a wide spread between, say, the NYSE and overnight VWAP, pay double attention! Price will often bounce between the two, sucking in shorts at one level before squeezing them at the other.
• If you ignore one of these anchors, you’re missing half the battle.

Example: The “False Short” Trap

• QQQ traders see price stuck under the VWAP for 15 minutes—looks like a big short.
• If you’re not watching the overnight anchor, you’ll miss the bounce that catches everyone off guard.

Day Trades, Swing Trades, and the Art of Picking Timeframes Brian isn’t married to one timeframe. He adapts:

• Day trading: Focus on 1–2 minute charts, especially in the first 15 minutes after the open.
  • On high-volatility days, dropping to 15s or 30s for risk control.
• Swing trading: Start zoomed out (15/30/daily), then use the 1-min chart just for a precise entry.
  • Quickly revert to the higher timeframe for stop management and letting the trade breathe.

“For day trades, I like a two-minute chart. But if the S&P is moving 10 points in 30 seconds, I might use a 15-second chart to manage risk. For most swing trades, I’ll use the 15 or 30-minute, and a 1-minute just for entry.” What is the Five Day Moving Average—Really? A classic Brian Shannon gem: so many traders misunderstand moving averages, especially over different timeframes.

• The “true” five day moving average doesn’t exist on a daily chart until the closing price that day.
• To reflect a real five days at every bar, Brian uses 30-minute charts and calculates based on total minutes in equity trading (1,950 minutes for five days; 1,950 / 30 = 65 periods for a 30-min chart).

When News Collides with Technicals This week is a minefield: contract roll, OPEX, Fed decisions, and a holiday packed into three days. It’s a perfect storm for chart weirdness and surprises.

• Continuous charts, non-continuous charts, and ex-dividend dates can all mess up your levels.
• Futures traders have to watch the gradual decay in premium, while ETF traders (SPY/QQQ) can see sharp drops after dividend days.

“Sometimes I’ll just switch to the futures 30-min chart during roll or ex-dividend time to see real deterioration, vs. the sudden drop you get on SPY.” VWAP Crossover: Not Your Classic “Golden Cross” or “Death Cross” Here’s where Brian parts ways with the crowd:

• Classic moving average crossovers? He’s not a fan.
  • “A 10-day crossing above 50-day MA just means price has been up for a bit, but it doesn’t say who’s winning.”
  • These “crosses” often represent indecision, not actionable signals, especially in choppy markets.
• VWAP crossovers (e.g. daily VWAP crossing above overnight VWAP)? Not a clear buy/sell signal.
  • Focus more on price relative to these anchors—are you above or below, and did you just break out with a strong candle?

“It’s more about take action near VWAP—not just because two lines crossed, but because price is showing strength above them with defined risk.” The Confirmation Candle: When Do You Pull the Trigger? Sometimes, markets will come down and touch a VWAP perfectly—then bounce hard. But touching the line isn’t your cue to enter.

• Wait for price to prove the level is holding—look for a bar closing above (or below) the anchor.
• Enter on confirmation, not at the first touch.
• Stops go just below (for longs) or above (for shorts) the “failed” defense of that anchor.

Selling, Shorting, and Using Anchors on Both Sides Got a short bias? Brian’s workflow:

• Anchor VWAP from the latest swing high.
• Watch for price to get trapped below that anchor, bouncing between it and the overnight or 9:30 anchor.
• Preferred short entry: as price fails below the anchor, with a stop just above the most recent lower high.
• First cover: at the next key VWAP (e.g., overnight anchor) on a quick drop—don’t overstay if the move is getting stretched.
• If price bounces at this support anchor, add a new anchor there. Only short again if price breaks below this support VWAP and confirms with a lower high.

“The average participant is now losing money—when that happens, people start to panic and liquidate, and shorts get aggressive. That’s when sellers regain control.” A Real-World Example: Roblox (RBLX) and a Trend That Just Won’t Quit Brian’s recent trades aren’t always about catching flashy intraday moves. One standout is Roblox (RBLX):

• In a monster trend for a month.
• Even then, entries matter—he waits for pullbacks and confirmation above VWAP anchors.
• Most trades are a couple of days to a couple of weeks, with day trading exceptions on high-volatility days.

Favorite Timeframes and Tools for Tracking Trades

• Entry: 1-minute for detail, but get off the lower timeframe ASAP and manage on 15/30-minute or daily.
• Day Trading: 1–2 minute for first 15 minutes, wider/longer as market settles.
• Swing Trading: Enter with precision, then zoom out to manage.
• Risk Management: Always know your stop before you enter.

“I’m not looking to be a day trader all the time. On days where the market is at a five-day moving average, like before a Fed announcement, I focus on day trades to avoid getting stuck in big swings.” The Psychological Advantage: Layered VWAP and Multiple Timeframes Many traders only want to see the “active session”—that is, what happened after the 9:30 Open. Brian’s process adds depth:

• Always check overnight action—Globex shapes market tone before the bell.
• On trend days, overlay both session and overnight VWAP.
• Trends often retrace to these key anchors—don’t panic on normal pullbacks.
• The more times an anchor is tested, the likelier a failure will trigger a bigger move next time.
• “VWAP touch” vs. higher-low: Brian prefers to wait for strength above VWAP after a touch, not just the touch itself.

Anchoring in Downtrends: Don’t Just Anchor Highs—Anchor Lows Too Downtrend? Apply the same rules—anchor from the swing low, and look for price to test and fail that VWAP on rebounds.

• Only short when sellers regain control (i.e., price fails below the key VWAP after a test).
• The stop goes above the most recent high.
• If shorts cover at the next anchor, and a new bounce starts, add a new VWAP anchor from that bounce low.
• Only re-short when this latest support is lost again.

Key Takeaways

• News is noise—price is signal.
• Layer VWAP anchors from multiple sessions to find real support/resistance.
• Trade confirmation, not just “touches.”
• Know your timeframes—be flexible.
• Manage risk—ALWAYS.
• Buy strength after a pullback, not weakness.

FAQ: Quick Answers for Traders When should I use overnight VWAP vs. session VWAP? Use both, especially on high-volatility days. They reveal different “memory” points in the market. Does moving average crossover actually work? Not for actionable signals. They mostly show indecision or that there are mixed signals from different timeframe participants. How do you enter off VWAP? Wait for confirmation—price must reclaim the VWAP and print a higher high above it, not just “touch” and bounce. Can I use VWAP in trending markets? Absolutely! It’s key for spotting entry retracements (“VWAP touch” or higher-low above VWAP) and for staying out of false reversal traps. Final Thoughts The market never makes it easy—it climbs walls of worry, ignores our best logic, and keeps traders humble. But if you anchor yourself in price action, layer your VWAPs, and keep cool under pressure, you’ll have the edge no matter what’s flying across the news wire. Want more trading gold? Start with Brian’s book, and don’t forget—keep your eyes on price. Happy trading! “Trade what you see, not what you think. Only price pays™.”