This Day Trading Tip Will 10x Your Results (Top Down Analysis)

topd down analysis an incredible concept

where we use the high time frames the

medium time frames and the low time

frames and we line them all up together

to get the highest probability highest

accuracy and highest reward trades

possible but there's one big problem

that I want to address and that is that

many day Traders believe because they're

only going to be in their trades for a

few minutes or a few hours that top down

analysis is not relevant and they don't

need to be looking at those higher time

frames now in this video I want to show

you that that couldn't be further from

the truth and if you start to focus on

the top down process as a day trader

even if you're trading the five or 15

minute time frames you're going to have

better results and better performance in

your trading because you'll get higher

accuracy positions less losses and

bigger wins as well so with that said

let me teach you a top down analysis

process for day trading all right so

here we're looking at a chart this is a

5 minute chart on this chart we can see

pretty much a fat load of nothing this

Market isn't really telling us anything

and if we were trying to trade this from

low time frame day trading perspective

we're going to have a lot of difficulty

finding a position because realistically

the market isn't doing or telling us

anything so instead of just looking at

this in confusion and gambling a few

trades as people do what we can do

instead is jump up to the higher time

frames and analyze from the top down and

for day trading opportunities where

you're trading anything from the 5 to

the 15 minute time frame I still

recommend that you start on The Daily so

if we go to the Daily time frame here on

EUR USD we immediately get get a better

idea of what is going on so the market

right now from this daily perspective is

somewhat downtrending this downtrend has

pushed past this low here and this low

here also formed equal lows we've got

one two three equal lows which creates

liquidity now beneath that we have an

imbalance an imbalance is an open price

range this entire candle would be

classified as an imbalance but the

market did come quite the way through it

without quite filling it so

realistically the imbalance that we have

here is the area between the line we've

just drawn and this demand zone so that

is our imbalance now immediately we've

picked up on a few different pointers

that we wouldn't have seen from a lower

time frame perspective alone we have

liquidity 1 two 3 equal lows being swept

and we have a demand Zone through an

imbalance and the imbalance is now

filled the demand Zone which is this

last candle before the impulse has now

been retested so now that we've had this

sweep of liquidity now that we've traded

into this demand what does that tell us

well that tells us that there could be

opportunity here for us to take the

market higher so even though that lower

time frame 5 to 15 Minute Market is just

a complete mess we've got an idea

immediately just from looking at the

daily if we've seen sweep of liquidity

fill of imbalance retest of demand that

could lead us into a bounce in this

market now if we also consider the

trending structure although this phase

that we just discussed is indeed bearish

the larger phase of price action here

being from this low onwards is actually

pretty bullish we have continual higher

highs and higher lows and we've now

identified that this bearish trend has

actually just been an pullback inside of

the large upward move how do we know

that because the break that's taken

place here is not a clean break it's not

a break of significant structure it's

actually leading out to look like a

sweep of liquidity and a fill of

imbalance with that said we could then

anticipate a continuation of further

upside now we are day trading I haven't

forgot that which means that we're not

really going to be looking to take this

trade all the way through to a

considerably higher level we are instead

focused on shorter term moves which

means we want to take a trade that's

going to be a few hours long with the

opportunity to potentially stretch out

into something larger if the opportunity

arises so we don't need to stay up here

on the daily but we've got a really nice

idea as to what could happen now if we

then follow the top down process by

going down to the 4-Hour time frame we

will get a clear indication as to where

we could start to Target four positions

so taking a look at this Market from a

four perspective we see two equal lows

one two just there swept and we can see

that the market is now rejecting that

lower pricing which is indicated by this

Wick that we're seeing coming up here

now this doesn't confirm anything yet

but it is a good indication that we

could be going through with that

reversal that we've just discussed but

one of the biggest things the 4H hour

will allow us to do is refine our

targets so if we had the idea that the

daily might potentially be turning

bullish well now we can look for a

refined Target opportunities the first

Target we have in mind would be this

Supply Zone just here this is the supply

it's a very messy one but basically

because of the imbalance that we've got

running up here that open price range

we'd anticipate that generally the

market will at least make its movements

up towards this point okay so there's a

nice solid Target for us but above that

we can see we have this swing high that

could also be another potential Target

and a huge open imbalance into this area

here so the imbalance once again is this

open price range and now we are provided

with a few Supply zones so to Mark

Supply I used the last candle before the

impulse just here this is the last

candle before the impulse down and we

would do the same here but it's a bit of

a mess so I'm actually going to draw it

from the top of the wig down we are

ideally using this last candle before

the impulse but we should also account

for that choppy news driven movement so

just by looking at the daily in the 4

Hour that little range that we saw is no

longer a complete mess instead we have a

pretty solid idea that the market could

Bounce from here and we have some pretty

solid targets that we can use for number

one day trading number two extending

some of these day trades out into intra

week positions so trades that we hold

for a few days instead of just a few

hours or minutes these intra week

positions and being able to turn your

day trades into intra week positions is

where a lot of the profit potential is

maximized in your trading I've taken

positions before where I've entered with

the plan of taking a 1 to four and then

ended up holding for a 1 to 30 plus now

by no means are these common this is a

once every year or once every 2ear

scenario but these things can happen and

this is where they are born from doing

top down analysis okay so now we can go

down to the hourly time frame if we want

to and what we can do here is just

refine some of these areas the imbalance

that we just drew now leads us up

towards this point so we can remove this

as a Target and extend that Target even

further into this point here if we were

to get the sweep and yes I know on the 4

Hour we just saw it did push down lower

we would then be looking for

continuation opportunities up towards

this point this would be our day trading

format and then we could potentially

extend it even further into intra week

positions to tackle some of those larger

areas we discussed so now let's go down

to that day trading time frame I'm going

to focus on the 15 minute this is a good

day trading time frame you can go to the

five you can go to the one but your

results will be cleaner on the 15 minute

because that is where the opportunities

are going to be safer and more accurate

the higher the time frame the more

accurate the signals the market gives us

so we've turned an absolute mess that we

looked at initially on these lower time

frames into a fully fledged fully viable

trading opportunity we identified these

equal lows we identified the possibility

of Bounce from this demand we identified

some targets and now we can actually

start to day trade this so after Asia

session we saw the market move down

we've seen that sweep of liquidity under

here and now we can use these lower time

frames to actually day trade our way

into larger opportunities okay so here

we have seen the market sweep this low

we've seen many bullish rejections

coming in bullish rejections indicated

by this collection of Wicks Wix show

rejected prices so what we're seeing

here is equal lows swept and then we're

seeing the market pushing back up we're

seeing a big influx of buying taking

place here because the Market's failing

to close anything lower than this level

really okay so because of this we know

buyers are coming into the market on the

15 minute here we've also seen this

shift in the structure this is some

internal structure on this larger

movement but for day trading

opportunities we can work with this

internal structure so what we've now

seen is sweep of liquidity bullish

momentum coming in shift in the internal

structure that is over this point at the

highest and then also some of these

smaller points as well and what we could

do from this point is just follow out

our usual plan so for me that's going to

be looking for demand zones to buy from

I like to buy from demand and self from

Supply I don't really get into markets

in any other way so for me sweep of

liquidity shift in the internal

structure this would be the demand Zone

that we could look to buy from so what

we have now is no longer just a choppy

but also opportunity to turn this into a

significant trade now another thing is

with day trading let's say we wanted to

Target this high for a sweep because

this is the only target we could

identify on those lower time frames our

risk reward is not going to be so good

okay the risk reward on this position

would be 2.1 that's not great for me I

want to be taking more than 2.1 on the

trades I take generally I want to take a

2.5 of three or more so this would be a

tricky one for me to kind of push myself

to get into in fact it would go against

my plan so I wouldn't get into it but

because we've got that higher time frame

narrative We Now understand the market

could actually come all the way up to

this point which obviously is going to

dramatically improve the trade so now we

have a 99.7% potential trade on the

cards we could potentially get into this

and run it all the way up to this larger

Target now this is where day trading can

kind of intertwine with the higher time

frame trading or the int week trading

okay there is no reason realistically

unless you are trading Futures to get

out of the trade before the ends if you

have a clear Target defined and the

market is moving towards that Target you

can hold trades longer you can still use

your day trading methodology to get into

the positions as we've done here but you

have the opportunity to hold the trades

out for larger targets okay so now let's

see how this trade goes as you can see

we come down we get a tap in we then

have a push away now there's also a

secondary opportunity formed here if

you're a bit more conservative where we

have the true break of structure the

market comes up pulls down trades into

this demand and then we get the push

away we can put stops under the low as

we would same Target that's all good so

let's just jump it back to the initial

just to keep it running through now we

can see the market is pushing towards

these highs and where this could be the

target done for your day trade this

would actually allow you to extend the

profits further later into the day okay

so let's take a look where the market

gets to by the end of the day the end of

the day for me is going to be classified

as around 5:00 p.m. UK time which is

just where we are coming into here so at

5:00 pm. UK time that's the end of New

York session the lower volume timing

start here if you wanted to take your

trades and all the profits on your

trades then this would be where you'd be

taking your profits which means instead

of just taking the two position you

could actually extend around a 4%

position out of this Market just by

using those Market timings and that top

down analysis process that we've run

through so far but this is where the

real beauty of this top down process

comes in now obviously first of all the

real Beauty came in from the fact we

turned this messy intelligible range

into something that we could actually

trade but past that it's the profit

maximization that is so valuable because

we know the market is likely to lead up

towards these higher areas on the higher

time frames we can use this intraday

entry to extend our profits dramatically

so let's say we wanted to be true to the

day trading fashion and get out of half

of our trade at this level we'd now be

taking 2% profits from this movement up

which is already good already a nice

return but what we can now do is allow

the trade to continue because we are

still running 2% in profits as well now

that we're at 4 R and because we have

that higher time frame narrative our

trades we're going to be a bit more

confident holding them for the longer

term so if we hold this trade we are now

holding it through the night into the

next day through London session and then

into the next day's New York session we

get a fill of that larger Target which

would be 4.5 or 4.7% return on the other

half of the trade turning this initial

2.1 trade in into a potential 6.7 or

something like that okay in total so we

get 2% profit taken here and around 4.7

or so taken on the full fill of this

move and all you actually had to do here

was not close the trade until tomorrow

you can close a bit make sure you've got

your day trading profits locked in but

because of the top down move we get to

profit maximize and hold trades a little

bit longer to let them get to those

larger targets now as I said

occasionally not often but sometimes

you'll be able to turn a day trade into

something massive ly significant if we

take a look at the first initial Target

that we looked at in this market The

Higher One up here and we extend our

targets up to this point for the second

half of the position we've now turned a

very small profit potential trade of

2.10 into

22.5% and obviously being a day trader

it's likely that you want to take at

least half the profit before the day is

over so you've taken your 2% that still

leaves open an opportunity to make

11.25% here on this continuation through

simply by not clicking the close button

it's really that easy when you get into

a market and you've got a solid

narrative all you have to do is just not

close the

trade if you leave the trade running

like this one here within just a matter

of days or a week you can get

significantly larger profits from your

positions so this is where you benefit

from using those day trading entries to

get super refined stop losses and then

using that higher time frame picture to

actually nail huge targets Okay small

stop large Target that's going to be

some significant risk reward and that

would have turned this position into a

full potential trade of around 13.5% or

13.25% with that half taken here and

half taken here and let's take a look

how long this trade took to play out so

this is running from the 14th to the

22nd of February which means this trade

was held for one week it's really not a

long amount of time to hold a trade that

you can get this much profit out of okay

and now from this point obviously with

the high time frame narrative in mind we

may have the idea that this is about as

far as the Market's going to get so then

we could go to the lower time frames

from this Supply and look for shorting

opportunities to capitalize from the

move back down and that is how you can

use top- down analysis to get more

profit out of your day trades if you do

this you will turn choppy ranges into

very clear ranges to trade from you've

got that bigger picture narrative

telling you the context you need to

understand where the opportunities might

come in 5 minute looks like a mess 15

minute looks like a mess but if you go

to the Daily things make a lot more

sense in terms of where you can Target

and where you can get in and the profit

maximization you can get from doing this

allows you to catch some of these huge

huge trades that number one will be very

nice for your account balance and number

two you can brag about to your friends

so that's it for this video you should

watch this one next or head to the link

in the description and join my free

course thank you for watching I'll see

you in the next one