𝗣𝗔𝗥𝗧 𝟭
My last post about learning professional market analysis received a huge response.
So I’m turning it into a series where I’ll show you exactly how I break down the market—from the bigger picture all the way down to a potential entry.
And the first skill you need to master is:
𝗧𝗜𝗠𝗘𝗙𝗥𝗔𝗠𝗘 𝗥𝗘𝗔𝗗𝗜𝗡𝗚.
Before searching for an entry, you need to know what the market is actually doing.
That’s where Top-Down Analysis comes in.
Instead of opening a 15M chart immediately, start high and gradually zoom in:
𝗗𝗮𝗶𝗹𝘆 → 𝟰𝗛 → 𝟭𝗛 → 𝟭𝟱𝗠
Each timeframe serves a different purpose. 👇🏻
1️⃣ 𝗗𝗔𝗜𝗟𝗬 — 𝗧𝗛𝗘 𝗕𝗜𝗚 𝗣𝗜𝗖𝗧𝗨𝗥𝗘
The Daily tells you the overall market environment.
Ask yourself:
• Is the market bullish?
• Bearish?
• Or ranging?
You’re not hunting for an entry here.
You’re identifying the bigger trend first.
2️⃣ 𝟰𝗛 — 𝗧𝗛𝗘 𝗠𝗔𝗥𝗞𝗘𝗧 𝗦𝗧𝗥𝗨𝗖𝗧𝗨𝗥𝗘
Now move down to the 4H.
Here, you want to understand how price is behaving inside the bigger picture.
• Is the trend continuing?
• Is price pulling back?
• Is the structure starting to shift?
The 4H gives you a much clearer look at the current structure.
3️⃣ 𝟭𝗛 — 𝗧𝗛𝗘 𝗦𝗘𝗧𝗨𝗣 𝗕𝗘𝗚𝗜𝗡𝗦
Next, move to the 1H.
This is where you start looking for a potential opportunity.
Watch how price reacts around key levels and whether the move you’re expecting is actually developing.
Still don’t rush.
You’re simply narrowing the possibilities.
4️⃣ 𝟭𝟱𝗠 — 𝗙𝗜𝗡𝗘 𝗧𝗨𝗡𝗜𝗡𝗚
Finally, zoom into the 15M.
This gives you a more detailed view of price action and can help identify a cleaner entry.
But remember:
𝗧𝗵𝗲 𝟭𝟱𝗠 𝗶𝘀𝗻’𝘁 𝗳𝗼𝗿 𝗲𝘃𝗲𝗿𝘆 𝘁𝗿𝗮𝗱𝗲𝗿.
Swing traders may execute from the 4H or 1H.
Day traders may use the 15M.
Scalpers can go even lower.
Your execution timeframe should match your strategy, holding period, and entry precision.
Think of top-down analysis like using a map.
You don’t start by examining one street before knowing the city.
First understand the bigger picture.
Then zoom in.
𝗗𝗮𝗶𝗹𝘆 → 𝟰𝗛 → 𝟭𝗛 → 𝟭𝟱𝗠
So next time you open a chart, don’t immediately ask:
“Where do I enter?”
Ask:
“𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗵𝗶𝗴𝗵𝗲𝗿 𝘁𝗶𝗺𝗲𝗳𝗿𝗮𝗺𝗲 𝘁𝗲𝗹𝗹𝗶𝗻𝗴 𝗺𝗲?”
Then gradually zoom in.
That’s the foundation of Top-Down Analysis.
But knowing the timeframes is only step one.
In Part 2, we’ll break down exactly what to look for on the Daily, how to identify bullish/bearish 4H structure, how to recognize a developing 1H setup, and what matters before taking an entry on the 15M.
𝗙𝗼𝗹𝗹𝗼𝘄 𝘀𝗼 𝘆𝗼𝘂 𝗱𝗼𝗻’𝘁 𝗺𝗶𝘀𝘀 𝗣𝗮𝗿𝘁 𝟮. 🔔
Practice makes a man perfect.
