Top Down Analysis Checklist

This is a checklist of instructions that I personally follow each morning as part of my top-down analysis routine.

If you struggle with consistency or discipline then set this as your homepage in your web browser as a constant reminder to perform this analysis before you begin trading each and every day.



Perform this top-down analysis routine for each currency pair in your forex trading portfolio (where applicable):

1. Analyze the Daily Chart

  • Identify the current trend (bullish / bearish / consolidation)
  • Change TradingView tag for currency to represent trend (green / red / orange)
    • This is to take note of your directional bias for this currency pair
  • Draw in the most recent support or resistance break
  • Identify 4 closest major 3x tested support & resistance levels (2 of each)
  • Identify any Simple Patterns, Advanced Patterns, Trendlines & EMA tests etc.
    • This is to build an overall picture of the market – stick to your strengths!

2. Analyze Your Trading Timeframe(s)

  • Identify the current trend (bullish / bearish / consolidation)
  • Draw in the most recent support or resistance break
  • Identify the most immediate “trouble” area for your directional bias
    • For determining whether or not you have a good R:R ratio when a setup occurs
  • Identify relevant patterns and EMA tests – where might other traders get involved?
  • Check for confluences with higher timeframes, especially Daily chart
    • For added confidence and perhaps added risk per trade (if applicable)
  • Set necessary alerts to detect potential trading setups that meet your rules

CLEAR CHECKLIST


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