In the Chart Traders Community, we apply a structured Top-Down Analysis to identify high-probability trade setups. This system, known as D-H-M (Daily → Hour → Minute), ensures that every trade aligns with the broader market structure while refining precision on lower timeframes.
Why Use Top-Down Analysis?
Markets move in fractal patterns, meaning price action on smaller timeframes reflects the same structural principles seen on larger ones. A trader who only focuses on short-term movements risks ignoring key trend dynamics. Our D-H-M approach ensures alignment between macro trends and micro trade executions.
The Process: D-H-M in Action
Step 1: Weekly & Monthly Overview
- When? Every Sunday, we analyze the weekly and monthly charts to establish the dominant market trend and key support/resistance zones.
- Why? These timeframes define major pivot points and trend cycles, offering a long-term perspective.
- How?
- Identify Elliott Wave patterns on the weekly chart.
- Apply Phi-based Fibonacci levels to project possible reversals.
- Assess price reactions at major institutional levels.
Step 2: Daily Analysis (D1)
- When? Every morning before the London session.
- Why? The daily chart sets the primary directional bias for trading decisions.
- How?
- Confirm the market’s position within the larger Elliott Wave cycle.
- Define key support and resistance based on Phi retracement zones.
- Identify any divergence between price and momentum indicators.
Step 3: Intraday Refinement (H4/H1)
- When? Before entering a trade, we refine our setup using H4 and H1 timeframes.
- Why? These charts help pinpoint liquidity zones and short-term structural shifts.
- How?
- Observe fractal wave development and reaction at Phi-based support/resistance.
- Confirm trade setups with confluence from trendlines, Fibonacci, and volume analysis.
Step 4: Execution & Timing (M15/M5)
- When? Before placing an order, we zoom into lower timeframes to fine-tune our entry.
- Why? This prevents premature entries and allows for optimal stop placement.
- How?
- Look for price reactions at pre-identified key levels.
- Check for final confirmations (candlestick patterns, liquidity sweeps, order flow).
- Execute the trade only if conditions align perfectly with our higher timeframe analysis.
The Weekly Outlook & Market Positioning
Every Sunday evening, we release the Weekly Outlook Report, covering:
- Key levels on the weekly and monthly charts.
- Macro Elliott Wave counts to determine the market’s current wave position.
- Projected price movements based on Phi Formula & Frac4tal energy cycles.
This process gives traders a clear roadmap for the week ahead, ensuring they trade only in high-probability market conditions.
Final Thoughts: No Noise, Just Wait
By following the CTA Top-Down Analysis (D-H-M System), traders avoid unnecessary noise and impulsive trades. We trade where the probability is highest—nothing more, nothing less.
Join the Chart Traders Community!
Want to take your trading to the next level with our CTA Top-Down Analysis and Phi Formula insights? Become a Chart Traders Member today and gain access to: ✔️ Daily Market Analysis ✔️ Weekly Outlook Reports ✔️ Exclusive Trade Setups ✔️ One-on-One Mentoring
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