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Topdownanalysis

Learn How to Trade Multiple Time Frame Analysis Hey traders, 🔝Top-Down analysis is one of the most efficient ways to analyze & trade different financial markets. In this post, we will discuss the time frames to watch and the main steps to go through to execute a Top-Down trading strategy properly. Being a Top-Down trader your task is to assess the global market perspective and identify the zones, the areas from where it will be relatively safe for you to trade it following the trend or catching the reversals. ➖Weekly time frame shows you the price action during the last couple of years. It unveils the major zones of supply and demand and indicates the long-term direction of the market. Your task is to spot these zones and underline them. The strongest market moves most of the time initiate from these zones. At the same time, you must remember that on a weekly time frame the market is extremely slow. Being beyond the key zones 90% of the time, it takes many weeks, even months for the market to reach them. ➖Once you completed a weekly time frame analysis, the next on your radar is a daily time frame. Daily time frame shows you 1-year-long price action. It indicates a mid-term sentiment. And again, here your task is to simply identify the market trend and underline major key levels. *It is highly recommendable to apply different colors for highlighting weekly/daily levels. Completing weekly/daily time frame analysis, your task is to set the alerts on at least two closest support/resistance clusters. You must patiently wait for the moment when the price reaches one of them. Once the underlined key level is reached, you start the analysis of intraday time frames. ➖The intraday time frames on focus are 4H/1H. Your task here is to spot the price action/ candlestick patterns. With such formations, the market unveils its reaction to the key level that it is approaching. You are looking for a pattern that confirms the strength of the level. Spotting the pattern you are looking for a trigger to open a trading position. Most of the time it is a breakout of a trend line or a horizontal neckline. The breakout confirms the willingness of buyers/sellers to buy/sell from the underlined support/resistance . Only then a trading position is opened. Here is the example how I analyzed and traded Gold using multiple time frame analysis: 1. I have analyzed weekly chart and spotted a key horizontal resistance 2. On a daily time frame, I found a rising trend line that matched perfectly with the underlined weekly structure. 3. Testing the confluence zone based on a trend line and a horizontal resistance, the price formed a double top pattern on 4H time frame. Its neckline breakout was my confirmation to open a short positing. Entry point was a retest of a broken neckline. The market dropped sharply, producing a very nice profit. Of course, in practice, Top-Down analysis is very complex and many things and concepts must be learned in order to apply that strategy properly. Follow the steps described in this post, learn to identify key levels and recognize the price action patterns and you will see how efficient this strategy is. Do you apply a Top-Down trading strategy? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
8
The Yen to take a Dump vs the Dollar. BUY UJ tomorrow AMUSDJPY is overwhelmingly bullish now that price has retraced on the Daily timeframe to form a Higher Low. From the top down its very evident that higher highs are on the horizon. There was some weekly indecision at the high last week at a strong resistance level. After a Daily bullish correction trendline was broken price retraced bearish to re-test the back of a trendline, 78.6 Fibonacci level, as well as a 3rd trendline bounce. This is all confluence for a long set-up. Last Thursday (5/4) and Friday 5/5) created two indecision candles on top of structure as well as a reversal signal in the mix. This is a recipe for a Long bias. A clear daily set up. Higher high. Higher low. Indecision on top of support. Price is currently on the buy side of two strong trendlines. I'm looking for a re-test to go long. for another Higher high, potentially to the next weekly Level.
Long
by DesharedPierreJr.
NAS100$NAS100USD After looking at QQQ and it breaking through the "Gap Fill" to the upside and the DXY being weak i'm looking for NAS100 to also continue to move to the upside. My bias is long. Disclaimer: This is not trade advice. Trading foreign currencies, stocks, indices, etc can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the financial markets, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose!!! Good luck and Happy trading!
OANDA:NAS100USDLong
by DTradesFX2
2
DXY$DXY Dollar Showed Little Reaction to CPI Data so i'm looking for the markets to act normal with no more major news ahead anytime soon. Therefore, i'm looking for DXY to drop and make a correction. Disclaimer: This is not trade advice. Trading foreign currencies, stocks, indices, etc can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the financial markets, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose!!! Good luck and Happy trading!
TVC:DXYShort
by DTradesFX2
April 2023 - $5600 Bottom, Start of A New CycleOk so basically Dollar Milkshake Theory + Central Bank Incompetence + Monthly PA + Sep/Oct 2018 PA = bottom not in. Oh and also a giant global debt bubble (good luck using credit or cash when this pops). BoE bond buying will accelerate GBP collapse along with other currencies since its inflationary. Also, Fed won't pivot and will only neutralize the market up until elections are over. They will not care about UN requests and whether it crashes at this point since they don't represent you and are not held accountable. Also they would love a world where they are the buyers and lenders of last resort. I'm predicting a $5600 bottom around April of 2023, assuming things start collapsing soon, and then from there we moon to new ATH in about 3 years to around $120,000. This is assuming debt bubble collapse which would force money to start looking for alternative paths. Crypto being the big one and it will start to be seen as a safer asset. Also, people love speculating and Millenials still have Trillions of Dollars to inherit (and they love crypto). Ultimately, these hedge funds/institutions work for these families with money. If you draw the trendlines as I have, with log scaling, it looks like BTC is in an upward channel. It would make sense to touch the key level marked in green around $5600. This is a key level as you can see on the graph and respecting this level would legitimize the 2019 - 2021 cycle. Below this level would be another $3k retest but it just seems very unlikely accounting for where adoption is now. Taking the trendline of the cycle from 2019 bottom to 2021 top and extrapolating it on a bottom around April 2023 actually ends up nicely touching the top of the channel. 100k will be a strong psychological barrier and therefore, it could result in a nice short squeeze and run up to the $120ks (top of channel). This is the first time crypto has actually been in a bear market and calling bottom now around this 20k range is naive at best. Also macro is on the cusp of the typical 100 year depressive debt cycle. Don't take it from me though -- I listen to Dalio. $10k will be a nice bounce back up to right before $20k only to be rejected for another low to my bottom target. Enjoy and may the odds be ever in your favor!
COINBASE:BTCUSD
by KDC007
10
Why isn't EU moving as it's supposed to be ?For days, EURUSD has been in consolidation mode and it's what we all must endure however maddening it gets, we just need to wait till price is done gathering enough volume to move to it's intended direction which is a sell. D1 has been screaming for sells yet price hasn't moved from it's consolidating phas and when it does, we will be there waiting for the big drop. You can set your sell limit at 1.O85O for the time being because i believe price should move before the end of today till next week and hopefully beyond !.
Short
by LaBOSS_FX
1
EURUSD - Top Down AnalysisI wont' spend too much time explaining my thoughts about this pair. The above chart illustrates in a nutshell my expected predicted projection for EURUSD - around 3rd week price to be around 1.03 Now let's take a closer look at some of my thoughts. Jumping over to the daily. Reasons to be long include: Stochastics Oversold RSI Above 50 Bullish Channel Breakout Price Action Above 200 SMA Lastly the weekly Solid bullish breakout from bearish channel. == IN SUMMARY == My bias has shifted to bullish.
Long
by Michael_Harding
1
USDCAD - Top Down AnalysisStarting with the 4hour chart above, price action currently trades just above the 1.38 handle. As of writing this article, there are still lots of bullish indications in play such as the ascending channel, RSI above 50, and price action above the 200SMA. == DAILY == RSI Divergence Maintaining Bullish Channel Trading Above 200 SMA ( Bullish Sign) == WEEKLY == * Weekly timeframe shows bullish momentum easing off with RSI dropping below 70 * Fairly strong resistance around 1.39 - 1. 40 == IN SUMMARY == Be careful about short selling this pair as further upside is still warranted until some of these bullish indications fade further
by Michael_Harding
Analysis on XAUUSDGold created a double top on a monthly timeframe and then broke out of the neckline which tells us that the trade reversal is a very strong one. we're expecting it to drop down to the next support zone which is 1400. on the weekly timeframe, we can see gold break out of a dynamic support trend line then go down to the monthly timeframe neckline, reverse to hit the previous resistance zone before falling which also tells us that there was a break and retest from the weekly dynamic support trendline. we can also see gold creating a pullback then I drew the fibonnaci from the swing low to the swing high(the retest of the trendline) and we see gold get to the 0.618 fib level and then begin to fall again. with all these, I strongly believe gold is falling massively to the next support zone. it will get there next year lol so its a massive swing trade. SHORT GOLD.
FOREXCOM:XAUUSDShort
by zilotheman
US500 Top Down Analysis!!! Copy and Paste the links below to see the charts i'm referring to in TradingView !!! On the weekly we can see how price this past week opened and rallied higher into the Weekly SIBI and then afterwards nuked lower attacking PWL , and if price breaks below 3720 then I would like to see the SSL as the DOL for the upcoming weeks. On the daily we can see clearly how price this past week formed the HOTW at Tuesday inside the Weekly SIBI before nuking aggressively lower, and what is also apparent is how price engineered SSL with an old Daily low at Friday so that might be the DOL for this week if we get a clean retracement back into one of those Daily SIBIs . On the 4H/1H we simply have this past weekly price-range annotated from High to Low, as we are going to be monitoring how price plays out inside that price-range if it doesn’t break out of it. For more info/clarification concerning this Top Down Analysis don't hesitate to message me.
U
by GizMoney