What is Top-Down Analysis? Your Key to High-Probability Forex Trades
Learn to Trade in 5 Days What is Top-Down Analysis? Your Key to High-Probability Forex Trades Top-down analysis is a structured approach to Forex trading, starting from higher timeframes (weekly, daily, 4-hour) to identify trends and zooming into lower timeframes (2-hour, 1-hour, 30-minute, 15-minute) for precise entries. After seven years of trading and millions in profits, I’ve used this Price Action Trading method to generate $1,000–$1,500 weekly in the $6.3 trillion Forex market. In this guide, I’ll explain top-down analysis, why it’s critical, and show a real trade example to prove its power. Get my 5-Day Trading Mini-Course 1. What is Top-Down Analysis? Top-down analysis involves analyzing market structure from the highest timeframes (weekly) to the lowest (15-minute), splitting the process into trend identification and entry confirmation. Key Components: Trend Identification (Weekly, Daily, 4-Hour): Determine if the market is bullish (higher hig...