TIPS AND RULES ON HOW TO PERFORM A

TOP-DOWN ANALYSIS

What you need to know when performing a Top-Down Analysis.

First thing you need to do before performing a Top-Down Analysis is you need to know the
properties, by properties I mean what are the characteristics on the specific Currency pair,
Index, or Indices. In this E-Book I am going to compose these properties in a form of
questions so that you ask and answer yourself while performing a Top-Down. Another thing
you need to do is you have to have rules on when performing a Top-Down Analysis. You are
probably asking yourself what, could be the properties and rules you need to know and
have going about performing a Top-Down Analysis… I am going to go through all that in this
E-Book. I am also going give you guys’ Tips for a good market analysis.

The Properties and Rules

Properties of Market Analysis.

• Is the Market on a Bullish or Bearish Trend? Please take note that a Trend is only
confirmed when there are two or more lows or highs.
• What do you want to do with the markets? Do you want to Swing it (which is
entering trades on a higher timeframe/lower timeframe and holding them for a long
period of time) or do you want to scalp (which is entering trades on a lower
timeframe and holding them for a short period of time).
• Now that you know the Trend and know what you want to do with the market, does
price close with a candlestick close below all the Breakout of Structures (BOS) on
your analysis?
• Are your Supply Areas at Premium Price and Demand Areas at Discounted Price?
• Liquidity comes in many ways. Where is the Liquidity and is it Swept?

MATSHEDISO TRADERS PTY (LTD) ©

Rules when performing a Top-Down Analysis.

• Do not look for buying opportunities in a Bearish Trend/Selling Trend. Do not look
for selling opportunities in a Bullish Trend/Buying Trend.
• Do not look for Supply Areas at Discounted Price. Do not look for Demand Areas at
Premium Price
• What goes comes down and what goes down comes up. Meaning when price
impulses to the downside it will always correct to the upside to fill in the imbalance.
• When price closes with a wick above or below a Breakout of Structure (BOS) it is not
considered as a valid BOS unless if the wick is 75 Pips or More.
• Don’t Be Liquidity

Tips when performing a Top-Down Analysis.

• Analyse, Trade then Back-test.
• Perform a Top-Down Analysis from your Monthly chart to your M30/H1 chart.
• When The Dollar Index is Selling… all XXXUSD pairs are Buying and all USDXXX pairs
are Selling. When The Dollar Index is Buying, all XXXUSD pairs are Selling and all
USDXXX pairs are Buying.
• Always keep track of high impact Fundamentals.
• Be confident with your analysis.

MATSHEDISO TRADERS PTY (LTD) ©