What Is Top Down Analysis?

Aligning entries with the higher-timeframe order flow

Step 1 - Higher Timeframe (HTF) (Monthly / Weekly / Daily): Identify overall trend (Bullish/Bearish), mark key support/resistance, and locate major liquidity zones. (Defines your Bias)
Step 2 - Mid Timeframe (4H / 1H): Refine market structure (BOS/CHoCH), identify key Order Blocks/FVG, and track price as it approaches liquidity. (Builds your Setup)
Step 3 - Lower Timeframe (LTF) (15m / 5m / 1m): Wait for entry confirmation (MSS/Rejection) near key zones, and execute with managed risk. (This is your Execution) Key Insight: Higher Timeframe = Direction, Lower Timeframe = Entry. Avoid entering trades based on LTF alone.