Introduction
Understanding charts is critical to trading success. Top-down technical analysis provides a structured way to analyze price movements by starting with the big picture and drilling down into the finer details.
What is Chart-Based Top-Down Analysis?
Top-down analysis on charts involves beginning with higher timeframes, like the monthly or weekly chart, and then narrowing your focus to daily or intraday charts. This approach ensures alignment with the dominant trends.
Steps to Perform Chart Analysis
Start with higher timeframes: For example, identify major trends and key levels on the weekly chart.
Move to Intermediate Timeframes: For example, focus on the daily chart to refine your analysis.
Drill Down to Lower Timeframes: For example, use 4-hour or 1-hour charts for entry and exit points.
Recommended Tools
TradingView: For multi-timeframe charting.
MetaTrader: For advanced technical indicators.
Conclusion
By mastering top-down analysis on charts, you can improve your trading precision. Practice this method using reliable platforms like TradingView.
If you want a step-by-step system to master trading, you can enroll in our Trading Game Mastery Arabic language course.
If you are stuck and need one-on-one guidance, you can book a coaching program through our Coaching Programs.
You can watch the following video on my channel where I talk about the same concept in the Arabic language:
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