What is a Top-down analysis of securities while looking at their charts?
Top-down Analysis of security will give a broader view of the major demand-supply levels.
Technical analysis uses a top-down approach for investing and trading.
For each stock, an investor would analyze long-term and short-term charts. Consider the overall market, most probably the index. If the market is in bullish mode then select the particular sector then select the stocks.
Analyzing the Multiple Charts- Time frames the Market structure of different time frames will tell a different story.
The stock selection will depend on the strength of higher time frames and then ENTRY for the trade will be decided in the Lower Time frame as we can get into the trade EARLY.
Looking at the major Demand Supply levels of the higher time frames we can make a trade entry from lower time frames by considering their indicators in overbought/oversold zones to get a precise entry.