What is Top-Down Analysis?

Top-down analysis is not new. We have been doing it at FMP for a very long time.

It means starting from the Longer timeframes and going down a timeframe to check the direction of the trend. The monthly, weekly, daily, and 4HR are timeframes used for the direction. Anything lower than those is for entries. So you have to remember to stick with your bias you had on longer timeframes and not change that when you head to lower timeframes.

A very good example is how Marc starts on the weekly and goes down to Daily. Sometimes he would go on 4hr to check for more clarity. I will show you a slightly different way to do this on Trading View charts without any indicators on and just look at price action itself.

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Please watch the video to see exactly what I mean below: