Trade Like TTrades - Top Down Analysis

Summary

Highlights

• Mastering top-down analysis increases trading efficiency. 🎯
• Align time frames to catch market expansions effectively! 🚀
• Use multiple time frames: daily for bias, hourly for structure, 5 minutes for entry. ⏰
• Explore bullish and bearish order blocks for strategic trading. 🏦
• Learn from Silver, Gold, and USD JPY case studies for hands-on understanding. 💹

Key Takeaways

• Top-down analysis is crucial for effective trading – align higher and lower time frames for better results! 📊
• Understand bullish and bearish order blocks to anticipate market moves accurately! 🚀
• Utilize daily, hourly, and 5-minute time frames for precise entries and exits. 🎯
• Learn from real-world examples like Silver and USD JPY to improve your trading strategy! 🌍
• Incorporating structure and bias helps in mitigating risks and targeting high rewards. 💪

Overview

Chapters

• 00:00 - 01:00: Introduction to Top-Down Analysis In the 'Introduction to Top-Down Analysis' chapter, the concept of top-down analysis in trading is introduced. The emphasis is on the importance of using multiple time frame analysis when evaluating trading scenarios. The chapter begins with a PDF example, aimed at explaining the foundational concepts before delving into practical examples on trading platforms. In the PDF, there's a discussion on identifying a bullish order block, which serves as a critical example for understanding this analysis approach.
• 01:00 - 02:30: Understanding Bullish and Bearish Order Blocks In this chapter, the focus is on understanding bullish and bearish order blocks. The narrative illustrates a scenario where price action takes out a low and closes through a series or single candle, suggesting a bullish trend. The importance of considering higher time frame analysis is emphasized, as failing to do so may result in trades that run through stop losses. The chapter warns against the mistake of overlooking the broader market context when making trading decisions.
• 02:30 - 04:30: Higher Time Frame Trading Strategy The chapter discusses a trading strategy focusing on interpreting higher time frame signals to inform trading decisions. It explains how a previous high with a bearish engulfing candle closing below the low can signal a bearish trend. The strategy emphasizes not to look for bullish opportunities when the analysis anticipates a bearish continuation. Instead of adhering strictly to traditional patterns, the approach suggests seeking bearish setups when there's a prevailing bearish expansion candle, rather than getting distracted by a bullish order block.
• 04:30 - 06:30: Daily, Hourly, and 5-Minute Analysis The chapter titled 'Daily, Hourly, and 5-Minute Analysis' delves into the methodology of aligning lower time frames with higher time frames for trading strategies. The speaker describes how to identify bearish order blocks, specifically when highs are swept out by a series of candles. They emphasize waiting for a close beneath these levels to consider entering short positions. In doing so, they align short-term observations with long-term trends to anticipate market expansions. They explain starting with a higher time frame bias, noting the significance of closures below the previous day’s low, which signals potential further price reductions. By forming swing points and anticipating price behavior on higher time frames, the speaker emphasizes maintaining a cohesive strategy from daily to short-term actions.
• 06:30 - 11:00: Example 1: Daily, Hourly, and 5-Minute Setup In this chapter, the focus is on using multiple time frames for trading with a specific approach. The strategy involves using an intermediate time frame for structure, identifying changes in the state of delivery to form wick patterns. This time frame is also used to identify points of interest for trading on a lower time frame. On the lower time frame, the strategy further looks for opposing candles or order blocks to align with market expansions. The chapter concludes with a practical session in Trading View, showcasing examples of this strategy in action.
• 11:00 - 15:00: Example 2: Weekly, 4-Hour, and 15-Minute Analysis on Silver In this chapter, the analysis of silver is broken down into different time frames: daily, hourly, and 5-minute intervals. The daily chart is used to establish a bias, the hourly chart provides structure or support, and the 5-minute chart is used for entry decisions. There is a focus on identifying swing lows, observing that a particular swing low has been swept, which creates high resistance liquidity. The analyst often uses 0.5 of the wick as an area for potential support when high resistance liquidity is present.
• 15:00 - 20:00: Example 3: USD JPY Forex Analysis The chapter discusses the USD JPY Forex analysis, focusing on price movement and key indicators. The author references prior videos, emphasizing a bullish bias due to price actions such as a sweep and close back inside the range. The analysis identifies a new week opening gap, suggesting the potential for price to trade higher. The author uses an indicator on the hourly time frame to visualize the daily trading bias, aiming for higher price movements.
• 20:00 - 25:00: Example 4: Analysing Gold Chart In this chapter titled 'Example 4: Analysing Gold Chart,' the focus is on understanding a specific chart pattern related to gold trading. The discussion involves a sweep enclosure back in the chart, and there's an emphasis on observing 0.5 of the Wick to determine if an upward trade is viable. The narrator plans to wait for a shift in the delivery state, which they identify as a confirmation of the Wick's formation. As the process is allowed to unfold, the narrative notes how the chart has moved, closing through a series of downward candles that resulted in a low. The chapter's insight rests on these technical analysis maneuvers and interpretations.
• 25:00 - 26:30: Conclusion and Video Requests The chapter discusses analyzing market trends and prices, particularly focusing on how to identify potential price movements using technical analysis. The narrator talks about anticipating changes in delivery and price, describing a bullish trend to certain price highs. The analysis involves looking for points of interest or structures in the price movements, specifically within a leg up in pricing. It is mentioned that a recently formed order block or opposing candles suggests no significant value gaps or points of interest, leading to a focus on observing any sweeps of previous low levels before shifting to a five-minute timeframe for further inspection.

Trade Like TTrades - Top Down Analysis Transcription

• 00:00 - 00:30 [Music] how's it going everyone this video is going to be over top- down analysis and why you need multiple time frame analysis in your trading we're first going to go over a PDF example and explain what I mean before going over various trading view examples to get the concept down so let's hop into the PDF so here we are in the PDF and you can see that we have a bullish order block
• 00:30 - 01:00 here with price taking out the low and then closing through the series or in this case a single candle so if we're bullish we can anticipate this low to hold as we trade higher here so you can see if I want to take a position on the retest my stop on the low what happens it just runs right through my stop loss and I see many people doing this and wondering why it happens well you just lack to consider the higher time frame analysis so you can see on the higher time frame we've just swept out this
• 01:00 - 01:30 previous High had a bearish engulfing candle closing below the low so I can anticipate this next candle to continue lower inside this next candle it doesn't make sense to be looking bullish when I'm anticipating price to continue bearish so with the understanding of the higher time frame analysis if I wasn't to trade it like a pattern and instead only look for bearish setups in this bearish expansion candle what would that look like you can see instead of looking at this bullish order block I'd look at
• 01:30 - 02:00 at this bearish order block because we have swept out this High using these series of candles that made that high once we close below it I can then look for a position short this is aligning my lower time frames with my higher time frames and that is when expansion occurs so how do I actually trade with the higher time frame the first thing I want to do is have a higher time frame bias so you can see here we have formed a swing point we have closed below previous day low so I can anticipate price to expand lower on the higher time frame or my daily bias then on an
• 02:00 - 02:30 intermediate time frame I'm going to use this for structure so I'll one look for a change in the state of delivery to form this Wick but then I'll also use it as a structure to look for points of interest to trade off of on my lower time frame and then on my lower time frame I'll use that point of Interest look for opposing candles or order blocks and then that is how I look to get on side with the expansion let's hop into trading view to go over some examples so here we are with our first example and we'll be going from the
• 02:30 - 03:00 daily to the hourly to the 5 minute so the daily is where I will derive my bias my hourly will be my structure or my supporting time frame and then my 5 minute for my entry so taking a look at the daily here we can notice we have a swing low down here but it has been swept so this is creating High Resistance liquidity now a lot of times if I have high resistance liquidity as a low I will look to use 05 of the wick as an area for A2 support and if you don't know what I'm talking about out here go
• 03:00 - 03:30 ahead and check out my Wicks video but as we reach into 0.5 of that Wick we also sweep and then close back inside the range so if you take a look at my daily bias video you'll know that I am anticipating price to trade higher what do we have right above here we have a nice Gap or the new week opening Gap so looking for price to trade higher from here I have my bias now we can go down to the hourly time frame so down here on the hourly time frame we will be using my indicator to visualize the daily
• 03:30 - 04:00 chart but you can see we have the sweep enclosure back in with this I'd want to see 0.5 of this Wick be respected to trade higher but with my structured time frame I'm going to be waiting for a change in the state of delivery here because that is what to me confirms this Wick has formed here so letting this play through so you can see here we have went and closed through the series of down Clos candles that made this low so now I
• 04:00 - 04:30 can anticipate this change in the state of delivery and price is bullish to these highs so with that I'm going to look for a point of Interest or some structure now in this price leg up I don't anticipate this low to get taken out because it has formed a new order block or opposing candles so with that there is no fair value gap or any point of interest in here so I'll just take a look of a sweep of this previous low right here and then I can use that to drop down to My5 5 minute time frame so
• 04:30 - 05:00 let's drop down to the 5minute time frame to see what the entry looks like now down here on the 5 minute time frame I'm once again going to want to see if I get that change in the state of delivery because then I can anticipate this low to hold and to trade the next candle higher towards my objective so taking a look right here let's see if we get that closure we do get that closure there and so then this is a possible entry with my stop on the low because I can anticipate
• 05:00 - 05:30 this low to hold as we trade towards the high because I'm aligning my daily bias with my hourly structure my hourly point of interest and then my 5 minute I'm looking for an entry so I could either look to take an entry right here on either a retest or the close at the market price look for two R and that is a first possible entry now I prefer continuation entries so what does that look like let's see if we form a new order block so here you can see we WR back into a point of Interest which
• 05:30 - 06:00 would be a sweep of a low and then now if we close over the down close candles that form that low that would be a valid order block or in this case a propulsion block so let's see so right here we do get that closure over so then I would look to enter at the market price My Stop on this new low because it is now protected and then I can look for 2 R so let's see how this works
• 06:00 - 06:30 there we go and we get a move to this short-term high as well as that objective from the daily chart or the new week opening Gap so heading back out to the hourly chart just to review what happened you can see we got a bias from the daily chart which is saying that hey we have formed a low that I anticipate to hold and I want to see it trade to this high so I have a directional bias from there I'm using the hourly chart to get structure or find lows that I expect to hold and then I can look for points
• 06:30 - 07:00 of interest or sweeps to get on side with a lower time frame to manage my risk to reach out those daily or hourly objectives so you can see now on the daily chart we have formed a swing low we have traded higher through that previous day's high and into the new week opening Gap so let's hop into another example in this next example we are going to take a look at Silver and let's analyze the weekly 4H hour and 15-minute time frame
• 07:00 - 07:30 so you can see here on the weekly we've taken out a previous High to the left we have closed back into the range and then we've had a continuation lower and what do we get on this candle closure a change in the state of delivery right because we are closing through the up close candles in this case it is one that made the high right so now I can anticipate this to continue lower what do we have right here we have some failure swings on the lows right so looking for price to trade to this fair value Gap here with this current weekly
• 07:30 - 08:00 candle so now that I have a directional bias I'll go ahead and drop down to the 4-Hour time frame to look at the structure and see inside these higher time frame candles so here we are on the 4-Hour time frame and if I'm anticipating price to have a bearish week what I am focused on is letting the wick form in the higher time frame candle CU if we're going to have an expansion candle it will have small Wicks and a larger body so once that Wick forms I can then look to trade the body or after the High forms open high
• 08:00 - 08:30 look to trade from the high to the low and then close so similarly in this last week when we trade higher and form the higher time frame Wick then I can look to trade the expansion lower so with that logic that is what I'm going to try to do here in the 4our time frame so as we look and zoom into the 4-Hour time frame here I'd want to see price open reach a higher into a point of Interest before having a setup so if we take a look what do we have here we have price
• 08:30 - 09:00 reaching higher sweeping out a high as well as reaching into an opposing candle right here so two points of interest overlapping there we have a closure back inside the range so you can see if you reference my daily bias video we have closed back inside the previous bar so I could anticipate price to trade lower here now you can see we also have these equal lows down here as well as a previous low which is marked out by my IND indicator so all these lows right
• 09:00 - 09:30 here which would be my target so I'm going to go ahead and Mark those out there so now that we have our directional bias I'm anticipating that this is the wick of the higher time frame candle I want to drop down to another lower time frame for entry which would be the 15-minute time frame so down here on the 15-minute time frame I'd want to see when we get that change in the state of delivery or the closure through these series of up closed candles into that important level into that high so as we let this continue let's see what happens we get a new
• 09:30 - 10:00 candle and we get that closure there so the same thing here has this Wick formed on the higher time frame well we have retraced higher into the point of Interest right into this fair value Gap and then we closed through these series of up close candles here so now we have a change in the state of delivery and an order block so with this I could look to get on side so I can either wait for a retest or just enter on the close which is my preference then I want to put my stop on that high that I anticipate to
• 10:00 - 10:30 hold so taking a look and zooming back out where is that Target we marked out it is right there which also lines up with the standard deviations for my indicator and this is a 3r trade so let's see what happens here so we get a continuation lower right through our Target so when does expansion occur it is when you align all the time frames together so you can see here this is when the 15minute was bearish and it's also paired with the 4our being bearish and also with the
• 10:30 - 11:00 weekly being bearish so zooming back out to the 4our you can see that we were looking to trade in the wick of the higher time frame bearish candle we let that Wick start to form or where we'd anticipate it to form and then we aligned a bearish 4-Hour setup within the weekly time frame and then also align that with the 15minute setup inside of that I think this is one of the most important Concepts in trading because if you lack a higher time frame analysis you're going to be looking in the wrong direction and get caught off
• 11:00 - 11:30 sides a lot so let's get into another example so here we are with our next example and this is going to be on USD JPY so some Forex examples so if we take a look at this trend you can see this day right here we have traded back into this fair value Gap or sweeping out this previous day low forming a protected low so if this trend is going to continue I'd anticipate this low to hold and do we have a point of interest in this range we do as we have a fair value Gap
• 11:30 - 12:00 within that fair value Gap price has wretch into it closed back inside the range or inside the previous bar so I can anticipate price to trade higher the following day so with this as our bias on the daily chart I'll drop down to the hourly chart for structure so here we are on the hourly chart and you can see my indicator has already plotted the change in the state of delivery but I'd look for a change in the state of delivery here to confirm that this Wick that I'm anticipating to hold is going to hold to trade higher to
• 12:00 - 12:30 the highs right and you can see marking out the previous day high which the indicator already does that is where I would have a Target now looking into the next day I would want to see price open low high close right so I'm just going to look for price to trade lower first form an order block and then go higher from there so you can see a very shallow run which is preferred we sweep out this low in this consolidation and then we close over or not quite yet but I'm
• 12:30 - 13:00 looking for a closure over the down close candles that formed that leg we have yet to close over it and there we get the closure over so if I was just wanting to execute on the hourly time frame which I can do I don't need three time frames I cannot go lower if I can manage my risk I can go ahead and just take an entry there and looking to that high that is 4 r or I could look to take off at 2 R over at these highs here now I could do that or I could look to go to a lower time frame entry either works it
• 13:00 - 13:30 is just personal preference so as this trades higher what do we see we get a nice displacement now we have a fair value Gap and once again with the closure we have price reaching lower closing back inside the range so this is where I could drop to a lower time frame to look for a setup so let's go down to our 5 minute time frame and here you can see in London that is where we get our first setup here I could anticipate this low to hold if it it wants to trade to the
• 13:30 - 14:00 high and there we go and we get a trade higher there right now let's say I miss this trade let's go back out to the hour is it already too late well since I'm looking for price to trade to this highs it is not we have just formed an opposing candle here so I'd anticipate this to hold price up if it's trending to these highs so I'd once again just want to wait for a new hourly setup which we get here so you can see we retrace back into the order block we
• 14:00 - 14:30 have our sweep and closure and so then I can go back to the 5 minute time frame here to look for a setup now the same thing applies I'm just going to be looking for a change in the state of delivery here off this sweep and you can see we get that and that is what the indicator plots out go ahead and clean up these drawings so if I'm going to look to be trading this I can wait for a new load to form or look to let this Wick form and is not looking super great for
• 14:30 - 15:00 the setup I would not try to take a setup here because we're so close to these lows I would anticipate the lows to get taken out or if they're not going to it would need to close over this and then I could look to trade the following candle because this is likely to be a reversal candle so here we get that closure I could look to take an entry here I want my stop at least on the bodies right or the low and then I could look for two R which can be there or what I like to do
• 15:00 - 15:30 is go back out to my higher time frame and find where my targets are there right so if we're taking a look at this I have my targets up here that is where I could hold my Runners to now going back to the 5 minute time frame let's see how this works out there we get the candle for continuation which would be another entry and there we go and take out the highs so once again all I'm trying to do here is go from my daily my hourly and my 5 minute or my bias structure and
• 15:30 - 16:00 entry time frame and align those all together once those are all aligned together that is when expansion occurs so you can see here this is when they got all aligned together after the closure through these down closed candles and we get an expansion and then once again here once we close through these down close candles that is when we get the expansion as well so it's all about aligning all your time frames together and if you don't know what I mean there please check out my time frame alignment video so let's get into
• 16:00 - 16:30 one more example so here we are with our last example and you can see we are on gold and this is forming bullish structure right we have had higher highs higher lows and we get an expansion higher when we get expansion into a fair value Gap here continuous at expansion I'm looking for a new phase of price delivery which will either be a consolidation a retracement or a reversal and I use the daily candles to tell me what is happening so I'll need more information so I let a daily candle pass currently with this it is looking
• 16:30 - 17:00 like either a retracement or a reversal right it's not consolidating it is forming a nice bearish closure so I'm anticipating this next day to go lower and if we close lower it's going to be a reversal to trade to these lows if we close back inside the range I'm viewing it as a retracement to trade higher so we let the next candle close and with that closure I'm anticipating this to be a retracement right so with that where am I looking to trade it to these highs so with my daily bias I have a
• 17:00 - 17:30 directional bias looking higher I can drop to the hourly time frame for my structure and for the ease of things I'm going to use my indicator once again but you can see we have marked out that sweep we have our Chang in the state of delivery so I'm anticipating this Wick to hold and then I'd want to see an open low high close now in this leg where would I anticipate price not to trade to well I formed a new propulsion block here so I wouldn't anticipate price to go below there and I don't want to see a
• 17:30 - 18:00 close below the main threshold of it so within this range do I have anything there's not much here so I can use this opposing candle or just wait for a low to form so right here we're trading lower and I just want to see when I can anticipate this Wick to have formed you can see right here we retest that opposing candle we're back into the discount of this range we get a nice strong closure here once again if I just wanted to take an entry here I could go ahead and enter enter this and put my
• 18:00 - 18:30 stop on the low and Target to r or my standard deviation projections or the highs up here or I can drop down to the lower time frame we'll go ahead and drop down to the lower time frame just to show what I mean with aligning the time frames in the topown analysis but I find that this works very well so let's go down to the 5 minute time frame we are in our hourly setup and now we are in our 5 minute setup and once again what am I looking for I'm looking for the closure through these down Clos candles
• 18:30 - 19:00 here into the point of interest and so we let this play out what do we have well we have that so now I can anticipate this low to hold but I can also refine that down because I have a new order block here as it wretch into a fair value Gap so right there so I could go ahead and look to take an entry here put my stop on the low and you can see I have right about to two r on these highs to the left or if I want to hold to my higher time frame targets I would go back out to the hourly and out here on
• 19:00 - 19:30 the hourly where would my targets be either my standard deviations or those previous highs right and that's where you can get some pretty insane risk to reward with some Runners but for the sake of things we'll look to the highs right here for two R and then we can see how the runners worked out so let's go back to the 5minute time frame and here we are back on the 5minute time frame let's see what happens so speeding through this takes a minute but it goes and runs through the TP or that short-term high now if we go back to the
• 19:30 - 20:00 hourly see what I mean with taking targets from higher time frame objectives and using the lower time frames to enter into it to increase your risk to reward I can look for my projections from the hourly or looking to trade to these highs right so as we let this continue to play out let's see what happens get that expansion there to our standard deviation projections then we go and take all these highs up here so that is how you use top- down
• 20:00 - 20:30 analysis I hope you found this video helpful if you did please consider liking and subscribing and if you have any video requests please leave them in the comment section below I hope you have a great rest of your day and I'll see you guys next time have a good one