How I approach Top Down Analysis:



Step 1: Which H4 candle has reversed the daily range?

(confirm with m15/m30 CISD)

1. Asia (6pm or 10pm)
2. London (2am)
3. NY (6am or 10am)

Step 2: Determine if you are trading within the H4 reversal or a subsequent H4 continuation candle.

1. If trading within the H4 reversal you need

M30 CISD preceded by SMT + key level first....

Logic: Allow the reversal to form, this confirms the wick of that H4 candle and allows you to trade intra-candle continuations with lower time frame alignments (H1/M30)

2. If trading H4 continuation you need

H1/M30 fractal with associated m5/m3 CISD

You can trade either the reversal (c2) or continuations (c3) here on the LTF.

To trade a LTF Reversal (C2 before closure) consider:

1. Into a Key Level (FVG)
2. Small Opposing run
3. Need SMT at the C1 low
4. Trading the redistributions not LRE (think propulsion block, OB off an FVG, and not the original CISD)

3. Pair this with drivers

ask…. is the driver creating the h4 reversal candle?

or

is the driver after the h4 candle has already reversed?

If we have LOD / HOD established drivers should expand away from these levels / create protected swings

if we do not have LOD/HOD established drivers can create LOD/HOD
STEP3.88%
H-0.15%
FORM1-0.13%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)