Top-down analysis
Start high, finish low
Professional traders read the market from the top down. The higher timeframe (daily or 4-hour) sets the bias: is structure making higher highs and higher lows, lower highs and lower lows, or neither? The lower timeframe (1-hour or less) is only used to time an entry in that direction.
Trade with structure, or not at all
Bullish structure: you only look for buys. Bearish structure: only sells. Mixed structure: you stay out. Most losing trades fight the higher timeframe, and "no trade" is a valid decision.
Remember: Bias first, entry second.
Test yourself
In top-down analysis, what is the higher timeframe for?
Setting the bias: which direction you tradeThe bigger picture decides direction; lower timeframes refine timing.
The daily chart makes lower highs and lower lows. A 1-hour chart shows a buy signal. You…
Skip it: it fights the higher-timeframe biasSignals against the higher timeframe fail more often. Wait for setups in the bias direction.
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.