Top-down: bias, zone, trigger

8 min 55 XP

Always work from the top down

The order matters. You start at the higher timeframe and work *down*, never bottom-up. The big picture sets the rules; the small picture only fills in the timing. Flip the order and you will talk yourself into tiny setups that fight the dominant trend.

Higher timeframe — WHERE

Sets the direction (your bias).
Marks the key zones: supply, demand, major S/R.
Answers: which way do I want to trade, and from what level?

Lower timeframe — WHEN

Times the precise entry.
Shows the trigger: a break, a rejection, a small pattern.
Answers: has price actually turned here yet?

Concretely: on the higher timeframe you decide *"price is rallying into daily resistance, I am hunting shorts from that zone."* That is bias plus location. Then you drop to a lower timeframe and wait — you do nothing until price reaches the zone AND the lower timeframe gives a trigger (a failed push, a break of a minor support, a small reversal pattern). Bias without a trigger is early; a trigger without bias is a gamble.

The cardinal sin

Finding a setup on the 5-minute first, then zooming out to justify it. You will always find a reason. Decide the bias on the higher timeframe BEFORE you look for an entry, or the lower timeframe will fool you every time.

Work top-down: higher timeframe first, then drop down for timing.
Higher TF = bias + zone (WHERE). Lower TF = trigger (WHEN).
No trade until price reaches the zone AND the lower TF confirms.
Never find the entry first and rationalise the bias after.

Praxis.

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Level 2: Technical Analysis

Module 6: Multi-Timeframe Analysis · Lesson 80/144