Trading
Top-Down Analysis
Analyzing from higher to lower timeframes for trade planning.
Full Definition
Top-down analysis is a method of analyzing markets by starting with higher timeframes (weekly/daily) to determine the overall trend and key levels, then moving to lower timeframes (4H/1H) for entry refinement. This ensures trades align with the bigger picture while optimizing entry points.
Example
Start with weekly to see the major trend, daily for key levels, 4H for trade setup, and 1H for precise entry - this is top-down analysis.
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