0:02 so this was a trade that I took last
0:03 night and you can see it was a very
0:06 beautiful entry so in order to get the
0:08 best entry when you are trading you need
0:11 to make use of multiple time frames and
0:13 in this full lesson I will teach you
0:15 everything you need to know about Top
0:17 Down analysis so this is what you will
0:20 learn in this video what is topown
0:23 analysis why look at multiple time
0:26 frames instead of just one how to trade
0:29 using multiple time frames and I'm also
0:31 going to show you my own personal High
0:34 win rate topown analysis strategy at the
0:36 end of this video If You Can Master top
0:37 down analysis you can get this sniper
0:39 entries where you have like the tighest
0:41 stop- loss and you can maximize your
0:42 profits and make the most amount of
0:45 money out of your trade now firstly what
0:47 is stop down analysis A lot of people
0:49 always ask me what are the best time
0:51 frames to trade the truth is there is no
0:54 one single best time frame to trade it
0:56 all depends on the context that is why
0:58 you need to make use of multiple time
1:00 frames and top down analysis is help you
1:02 do just that it's basically analyzing
1:05 the charts from higher time frames and
1:07 then narrowing down to the smaller time
1:09 frames firstly we look at the overall
1:12 big picture of the market and then we go
1:14 down to the smaller time frames look for
1:16 our entry that is what topown analysis
1:18 is so the next question you might have
1:20 is why look at multiple time frames
1:22 instead of only one on the left hand
1:24 side we got gu on the 4our time frame
1:25 and you can see that price has
1:28 approached this major Supply area right
1:30 here which means that's going to sellers
1:32 at this area waiting to shut the price
1:34 down and push the price down over here
1:36 price gave us a Evening Star Candlestick
1:38 pattern which tell us that price is
1:40 about to reverse right now and how we
1:42 can enter for this trade is by going
1:45 down to the 15minute time frame which we
1:47 have on the right side over here if you
1:48 go down to the 15minute time frame you
1:51 get a better entry and you can also see
1:53 that price is creating a double top
1:55 right here so when price is creating a
1:57 double top you can expect liquidity to
1:59 be at this second top generating over
2:01 here so that is when we can enter for
2:03 our short position right here place our
2:05 stop loss above this stop right here and
2:07 take profit at the next key level or the
2:09 next demand Zone and we can't trade with
2:12 only just one time frame we need to use
2:13 multiple time frames so that we can
2:16 analyze our charts and also look for our
2:18 entry and if you still don't understand
2:20 the importance of top down analysis let
2:22 me give you three more reasons the first
2:24 reason is that you want to gain a
2:27 clearer picture of the overall trend
2:29 Direction so in this case we are on the
2:31 50 minute time frame and you can see
2:33 price is in the downtrend right so you
2:36 should be looking for sell right wrong
2:37 because if you go up to the higher time
2:40 frame the 4our time frame or even the
2:42 daily time frame you will see that price
2:45 is actually in an uptrend right the
2:47 overall trend is a uptrend the higher
2:49 time frame is showing us a bullish Trend
2:51 Direction which means that price is
2:53 going up and we should be only looking
2:55 for buy opportunities if we want to
2:57 trade with the trend and this is why it
2:59 is so important to make sure that you
3:00 also look at at higher time frame
3:02 because you will never know when you're
3:04 going to be wiped out by the overall
3:06 higher time frame Trend if you are only
3:08 focusing on the smaller time frame like
3:10 the 15-minute time frame for example
3:11 let's say you're on a 15-minute time
3:12 frame and you ENT up for a sale because
3:15 you saw that price was in a downtrend
3:17 and then you will never ever know when
3:19 this overall uptrend is going to come
3:22 inside the market and push the price up
3:23 and you're going to get stopped out for
3:25 your short trade right here so make sure
3:27 you take note of this the second reason
3:29 is that you want to get the optimal
3:32 entry Point as Traders our job is to
3:34 look for the price where we can get in
3:36 for the best entry so that we can
3:38 minimize our loss and maximize our
3:40 profits and you can do that by going
3:42 down to the smaller time frame to look
3:44 for your entry just compare these two
3:46 entry right here so on the left hand
3:48 side we entered for this trade on the
3:50 4-Hour time frame and there was a 48
3:52 Pips stop- loss over here and then on
3:54 the right hand side we ENT up on a
3:56 15-minute time frame and same thing we
3:58 place our stop loss based on Market
4:00 structure and in this case that's only a
4:02 11 pip stop- loss and if you compare
4:04 these two trades the risk to reward
4:06 ratio you can see this trade will have a
4:08 much more higher risk to reward ratio
4:11 compared to this trade over here and the
4:13 reason is because we had a battle entry
4:15 and that is why you guys also need to
4:17 make use of the smaller time frames to
4:19 look for a better entry point so they
4:20 can really have like those tight stop
4:23 loss like this 10 pip stop loss the
4:25 third reason is actually because we want
4:27 to check our blind spots so we assume
4:29 that there is a supply Zone area right
4:31 here so we enter up for a short trade at
4:33 this Supply Zone and we place our stop
4:35 loss Above This Supply Zone and place
4:37 our take profit all the way at the next
4:38 demand Zone which could be somewhere
4:40 right around here right if you look at
4:41 what price is doing right here this is
4:44 the major demand Zone but there is one
4:46 mistake right here because you actually
4:49 neglected your blind spot if you zoom in
4:50 at this area and you are just trading
4:53 based on what you see right here right
4:54 obviously the next take profit area is
4:56 right here but if you actually like zoom
4:58 out a little bit you will actually see
5:00 that there is another demand Zone that
5:03 is at this area right here so that is
5:04 what I mean by blind spot and you can
5:08 see price went down to this demand areel
5:10 here first and then mitigated it and
5:13 actually went back up so in reality your
5:15 take profit equ is it been right here
5:17 instead of right here now if you don't
5:18 check your blind spots by looking
5:20 towards the left for any unexpected key
5:23 zones this is why a lot of time you
5:25 won't hit your take profit and you won't
5:28 exit the trade with a good profit so
5:30 make sure you check your blind spot now
5:31 let's talk about how to trade using
5:33 multiple time frames so for the higher
5:35 time frames you're going to use it to
5:38 look for the trend direction right this
5:40 is your directional time frame to see
5:41 the overall trend direction of the
5:44 market whether it's bullish or bearish
5:45 and then for the lower time frames
5:47 you're going to use it to analyze the
5:49 charts mark up your charts so that you
5:51 can determine the best entry points and
5:53 then for the micro time frames the
5:55 smaller smaller time frames you're going
5:57 to use it to look for your entry
5:59 confirmation for you to enter for the TR
6:01 trade now combining all of these
6:03 together you will get your top down
6:05 analysis top down analysis is basically
6:07 where you go down from the higher time
6:09 frames to the lower time frames and then
6:12 go down even to the micro time frames to
6:13 look for your entry but you first
6:15 started analyzing the charts on the
6:17 higher time frames so the higher time
6:19 frames are mainly the weekly and the
6:20 daily time frame and you're going to use
6:23 it to identify the trend Direction and
6:26 find any major key levels and also
6:28 identify the recent price daily high and
6:31 low so over here you can see this is on
6:33 the weekly time frame right we are
6:35 analyzing the charts and we are looking
6:37 for the overall trend Direction on the
6:39 higher time frame so right here you can
6:41 see price is obviously creating a
6:42 downtrend that is why we should be
6:45 looking for selling opportunities and at
6:47 the same time you can also Mark up your
6:49 major key levels on the weekly time
6:51 frame and you can see these two levels
6:54 are very very strong levels that price
6:56 would definitely respect if Price ever
6:58 encountered that level and then if you
6:59 go down to the Daily time frame you can
7:01 even mark up your prior day high and
7:04 your prior day low and price will tend
7:06 to respect these two levels here after
7:08 we got our overall trend Direction on
7:10 the higher time frames we will go down
7:12 next to the lower time frames to analyze
7:14 the charts even further so the lower
7:16 time frames are the 4 Hour and the 1
7:18 hour time frame and this is where you
7:19 scan for trading
7:21 opportunities and you mark up your
7:24 charts with supply and demand zones all
7:26 the blocks identify the market structure
7:28 higher high and higher low in uptrend
7:30 lower high and a lower low in a
7:31 downtrend and whether you look for any
7:33 break of structure and then you mark up
7:35 your Fibonacci and also your trend lines
7:37 Etc whatever TOS you have in your
7:40 Arsenal to help you mark up the charts
7:42 this is where you do it so once again we
7:43 narrowed down to the 4-Hour time frame
7:45 and we marked up our demand Zone at this
7:47 area here because there was a lot of
7:50 buying pressure at this area so this is
7:52 definitely a demand Zone where the big
7:53 Banks the smart money they are looking
7:56 to enter for buy in bulk like buy orders
7:59 in bulk and then this is your supply
8:01 Zone area over here so we can expect
8:03 price to mitigate this Supply Zone and
8:05 go down when price approach this area
8:06 here and also we can identify the market
8:08 structure like what I did over here you
8:11 can see this is the lower highs lower
8:14 lows lower highs uh lower lows lower
8:16 highs and another lower low so we can
8:18 see clear as day price is in the
8:20 downtrend in addition to all that like I
8:21 said you want to make sure that you use
8:23 all the tools in Your Arsenal to help
8:24 you mark up your charts so that you can
8:26 determine where to enter for the trade
8:28 and where to get out of the trade so
8:30 this is when you can also make use of
8:32 the Fibonacci retracement tool and mark
8:35 up like the retracement levels so to see
8:36 where price is going to retrace to and
8:38 where price is going to go next after
8:41 it's done retracing and you can also use
8:43 your trend lines to see the overall
8:45 trend Direction and look for liquidity
8:48 at these trend line bounce areas at this
8:49 point of time you have gain an overall
8:51 perspective of the trend Direction on
8:53 the higher time frames and you have also
8:55 analyze the charts on the lower time
8:57 frames mark up your charts and now
8:59 you're looking for your optimal entry
9:01 point so this is where you go down to
9:04 the micro time frames 15 minute and 5
9:06 minute time frame I will advise the 15-
9:08 minute time frame from intraday Traders
9:10 or even swing Traders and then for the 5
9:12 minute time frame is mostly for scalpers
9:14 who are getting in and out of the market
9:17 fast like within 30 minutes or within 1
9:19 hour so this is where you look for
9:22 confirmation for your entry and this is
9:24 where you observe like really really
9:26 observe the Japanese candlesticks to
9:30 tell us what is price doing is liquidity
9:32 entering the market is that confirmation
9:34 for us to enter for the trade in this
9:36 case we enter for the short position on
9:39 a 50 minute time frame at a supply Zone
9:41 area that we have right here and we also
9:43 entered when we saw some sort of
9:45 confirmation that price was giving us
9:48 selling liquidity AA right here you can
9:50 see this Candlestick right here and also
9:52 a trend line bounce right price bounc
9:53 off this trend line as well and it was
9:57 also a Fibonacci 61.8 retracement level
9:58 so we got all the Confluence for us to
10:01 enter for the short position and take it
10:03 all the way down to the next demand zone
10:05 right here now knowledge is absolutely
10:07 useless if you do not apply it so let's
10:09 apply it together I'm going to go onto
10:11 the charts right now and show you my
10:13 entire high wind rate top down analysis
10:15 strategy right now so like I said the
10:17 first thing you want to do is to go to
10:19 the weekly time frame this is where we
10:22 are gaining the overall trend direction
10:24 right the overall trend Direction and
10:25 marking up any major key levels that we
10:27 have so I can see there's a major key
10:29 level right here there's a major
10:31 resistance level right here there's
10:33 another major key level right here but
10:35 the thing about marking these key levels
10:36 on the weekly time frame is that some of
10:39 them are irrelevant we want to focus on
10:41 what price is doing currently the key
10:44 levels around price currently not the
10:45 key levels that is from freaking one
10:47 year ago so we can remove this and just
10:50 go down to the Daily time frame so if
10:51 you look at the daily time frame you can
10:53 see that price is actually in a uptrend
10:55 right now right price is creating higher
10:57 highs higher lows higher highs and
10:59 higher lows higher highs and higher lows
11:01 but at this point of time there could be
11:03 a shift in Market structure right price
11:06 could be reversing towards a downtrend
11:08 right now and in order to confirm that
11:09 we want to go down to the 4our time
11:11 frame to look for our Market structure
11:13 to observe Market structure remember so
11:15 we go down to the 4-Hour time frame and
11:16 we just remove this area because we can
11:19 actually mark up a supply Zone that is
11:21 at around this area here yeah around
11:23 this area here there's a supply zone so
11:26 let me change this to supply and then
11:29 there's another Supply Zone at this area
11:32 right here yep and then there is also a
11:35 demand Zone that is at this area right
11:37 here around this area right here that
11:39 you can mark up your demand Zone at this
11:40 point of time we have marked up our
11:42 supply and demand Zone but before we do
11:43 that we actually want to make sure that
11:46 we look at the market structure first so
11:48 let me just make it clearer for you guys
11:49 and as you can see clear as day price
11:51 was in the uptrend right price was
11:53 creating higher highs higher lows and
11:56 then another higher highs higher lows
11:58 and another higher high right here but
12:00 if If You observe what price is doing
12:02 right now price has approached this
12:04 major key level that we have drawn on
12:07 the weekly time frame right and also
12:11 there is no higher high being created
12:12 right what I mean by that is that there
12:14 is no higher high that is going to be
12:16 created right here right this high is
12:18 the same level at this high so that's
12:19 the first sign that tell us that
12:21 liquidity is about to go away and the
12:23 sellers is about to come inside this
12:25 market and take over the market and that
12:27 is exactly what happened right here
12:29 price actually managed to reverse at
12:31 this very strong Supply zone right here
12:33 this weekly key level and actually
12:35 revers to becoming a downtrend and is
12:37 creating lower highs lower lows lower
12:40 highs and lower lows right now so at
12:42 this point of time we should only be
12:45 looking for sell opportunities because
12:47 we have analyzed the market structure
12:49 and it show us that price is actually in
12:51 a downtrend at this point of time so
12:52 that is where we can move on to the next
12:55 step is to mark up our supply and demand
12:57 zones the more recent ones these are the
12:59 major key levels that was was like a
13:01 month ago so you want to mark up the
13:02 more recent one and in order to mark up
13:04 your supply and demand Zone you want to
13:06 look for areas of inefficiency so what
13:09 is inefficiency is basically these large
13:10 candlesticks right here you can see this
13:13 large candlesticks where price mov very
13:16 far away from the origin point and there
13:19 is a lot of liquidity a lot of momentum
13:20 right here so after you have identified
13:23 the inefficiency basically the supply
13:26 zone or the auto block a will be the
13:28 candle before this inefficiency so This
13:30 is the in efficiency and then this is
13:31 the candle before it so you want to Mark
13:34 the high of the candle the highest point
13:35 to the lowest point and there you have
13:37 your supply zone right there and then
13:39 after you mark up your supply Zone you
13:41 also want to mark up your demand Zone
13:43 and I can see there's a buying
13:44 inefficiency right here so I will even
13:46 go down to to 1 hour time frame to make
13:49 our my demand Zone much more title so
13:51 over here there's actually a demand Zone
13:53 area right there and just to make the
13:55 supply Zone nicer I'll just mark it like
13:56 right here you can see this is the high
13:58 and the low of the candle right here and
13:59 over here we have our supply Zone and
14:02 over here we have our demand zone right
14:04 and right now we can see price
14:06 approached this major Supply Zone area
14:08 that we have right here and in addition
14:10 to that you can also draw out your
14:11 Fibonacci like I mentioned from the
14:14 point A to point B right here and you
14:15 can see that price has also retraced to
14:19 the 61.8 retracement level and just nice
14:22 the 61.8 retracement level actually
14:25 lined up with our supply Zone aut block
14:27 AAL right here this just gave us an
14:29 additional conference for us to enter
14:31 for a sell position right here but at
14:32 this point of time we are still
14:34 analyzing the charts marking up the
14:36 charts and we haven't looked for our
14:39 entry yet so next step is that we want
14:41 to go down to the 15minute time frame to
14:44 look for our entry so at this point of
14:45 time right there is still a lot of
14:48 buying momentum a lot of buying pressure
14:50 inside the market so I wouldn't enter
14:53 for this trade yet what I want to see is
14:56 a market shift a shift of momentum from
14:59 the buyers to the sellers
15:01 that is able to push the price down like
15:04 this so at this point of time I am very
15:07 patient and waiting so waiting like a
15:10 lion hunting is prey in the bush waiting
15:12 and at this point of time this is what I
15:14 was looking for a market shift that
15:18 shift from the buyers to the sellers so
15:20 at this point of time the sellers is
15:21 starting to take back control of the
15:24 price remember if price wanted to break
15:26 past this Supply Zone it would create
15:28 large bullish Candlestick like this and
15:30 just Pierce through this Supply Zone
15:32 with a lot of momentum and pushing the
15:34 price up but instead what price did was
15:38 that price stopped the momentum stopped
15:40 the buying momentum stopped so at this
15:42 point of time price has showed us that
15:44 sellers have entered into this market
15:46 and the buyers is losing control of the
15:49 market to the sellers so this is where I
15:51 personally entered for the trade for I
15:52 entered somewhere right around here
15:54 because it was like a very nice entry
15:56 and I was pretty confident on this trade
15:57 and I placed my stop loss Above This
16:00 Supply Zone and I place my take profit
16:02 all the way down at the next demand Zone
16:05 but wait there is a mistake being
16:07 committed right here remember what I
16:09 said earlier about how you need to use
16:11 multiple time frames to check your blind
16:13 spots so if you actually zoom out and
16:16 look towards the left you will notice
16:17 that there is actually another demand
16:19 Zone that is being formed right here
16:21 right because there's inefficiency right
16:24 here once again and this area here is
16:27 actually a demand Zone but wait what if
16:29 we zoom out even further if you zoom out
16:31 even further you will see that there is
16:34 actually another demand zone right here
16:35 right you can see there's another demand
16:37 zone right here where price mitigated
16:39 this AA multiple times so actually our
16:41 take profit shouldn't be down here it
16:43 should be all the way up here at this
16:46 recent demand Zone and ladies and
16:48 gentlemen this is where the fund begins
16:50 let it happen you can see price went
16:52 down immediately and actually hit our
16:54 take profit right here before it
16:56 actually started reversing and hit back
16:59 up now look
17:02 observe look at this large Candlestick
17:04 the reason why there was a lot of
17:06 liquidity at this area and I predicted
17:09 it is because remember this is a supply
17:11 Zone order block the smart money are
17:13 looking to load up the sell orders at
17:16 this AEL that is why price gave us this
17:19 huge move down and I caught it because I
17:21 use top down analysis like this video If
17:23 this video has help you guys out and we
17:24 have just launched our free trading
17:27 Community trading tribe where we are
17:28 committed to helping each other to
17:30 improve so that we can all Achieve
17:32 Financial Freedom together and become
17:34 profitable Traders together so if you
17:36 want to join that click the first link
17:37 in the description and if you want to
17:38 learn more about supply and demand you
17:40 definitely should check out this
17:42 strategy right here and as always
