// Definition
Top-down analysis means reading the market from a higher timeframe down to a lower one: the big chart for direction, a middle chart for structure and a small chart for entry.
Explained simply
A common setup is the daily chart to decide the direction and mark the big zones, the 4-hour chart to read market structure, and the 15-minute chart to time the entry.
Working from the top down stops you from taking a trade that looks perfect on a small chart but runs straight into a major level on a bigger one.
Tip
Only take entries on the small timeframe that agree with the direction of the bigger ones.
Learn it on a real chart · EP 05Timeframes and Top-Down AnalysisWatch the free lesson →
For education only, not financial advice. Trading is risky and you can lose money.