Top down Trading Approach

Question 1

What is a top down trading approach

Answer 1

Start at HTF and or looking at ETFs to select industries we like

Then go to lower time frames and specific assets to see what to trade

Create multi time frame map of the market

Question 2

HTF vs LTF on signal vs noise

Answer 2

LTF more noise - less certain - moves smaller

Often used to set specific entries

Question 3

LTF used to set what?

Answer 3

Specific limit orders

Question 4

Why is Multi time frame trading analysis essential

HintS
Trend

Confirms Con…

Answer 4

Confirms trading with trend

Confirms confluence