WickCheck / Trading school / Top-down analysis
Top-down analysisIntermediate
Reading the market from the higher timeframes down to the entry timeframe.
What it means
A common flow: daily or 4-hour for bias and draw on liquidity, 1-hour or 15-minute for the setup, 5-minute or 1-minute for the entry. Each lower timeframe should agree with the one above.
How to spot it
- Write the bias first, then look for entries only in that direction.
Common mistakes
- Starting on the 1-minute chart and looking up only to justify it.
Related terms
TimeframeHow much time one candle covers: 1 minute, 15 minutes, 1 hour, 1 day and so on.…Higher-timeframe biasThe expected direction from a bigger timeframe (4h, daily, weekly), used to deci…Draw on liquidityThe pool of liquidity price is most likely heading toward next, such as old high…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.