 What's going on ladies and gentlemen welcome back to Bitcoin daily. It is I Bitcoin j here's with you guys today We're gonna be talking about the top-down analysis Before we jump in make sure to like the video make sure to leave a comment and subscribe to the channel man We are on our way to 10k. We're trying to get 10k subs by the end of the year Help us reach that go and then also Remember the giveaway we're gonna have a question of the day at some point during this video So all you got to do to enter the giveaway is answer the question in the comments below and We will pick one random person At the end of the day That's about it. Let's jump right in guys. So top-down analysis This is what I use every single day anytime. I am looking for a trade This is how I go through the you know anything. I'm looking at stocks crypto Whatever it is. This is how I can go through charts very quickly because I just look at the top I start at the top and then if I see something interesting Then I'll get I'll zoom in a bit more and and look at you know at the bottom Get down into the dirty the dirty which is you know the lower time frames So let's let's get into it man What is the top-down analysis a top-down analysis is a is looks at the big picture first for an investment idea or selection of stocks It's used to get a more comprehensive views view of a securities price action by moving from wider time frames to narrower Ones a day trader may first analyze daily or weekly charts to determine a securities long-term longer-term trend as well as a as a Significant my god can't speak today as well as a significant support and resistance level And then move to a smaller time frame to establish a good entry point For example, if a security is trending higher on the daily chart and there is a bullish momentum on the hourly chart a Trader who is using a top-down analysis could then move to a 15 minute chart and find a good entry point for their long Position all right guys are not gonna waste any more time. Let's get right into the Charts so we can view this I didn't want to give you guys too much PowerPoint today Wanted to get more into the visual learning aspect of this today, so let me make sure everything is you guys can see everything Okay, perfect. All right, so when looking at charts The way I like to do it usually I'll roam around between the one hour I mean, I'm sorry not the one hour between the four hour and daily charts Okay, I know how to speak English guys. I I swear I could do it. I just I swear I got this All right, so usually I roam around in the daily and four hour charts Okay, this is a daily time frame right now and With a daily time frame I could get a very very good idea of what the current trend is but now When I want to really look at what's going on. I'll go further back To see the bigger picture in trading you have you have to see the bigger picture in order to be successful so I this is the weekly chart here and Sometimes I go as far back as a monthly chart because I just really really want to get a good grip of what's going on overall so First you want to you want to look at the overall trend is it going up? Is it going down? You know you want to see the trend the reason why is because you want to always trade with the trend not against the trend You never want to trade against the overall trend. It is just you're setting yourself up for a difficult time for no reason your problem your your Percentage or winning percentage goes down if you try to trade against the trend Your probability goes down So there's many factors and why you should not trade against a trip and against the trend So the first thing is to always trade with the trend So that's what we what we're doing basically when we're doing a top-down analysis always start at the top of at the top and of the charts and then work your way down So So for example, we can grab this and kind of you know see where this has been We're bounced so you can see where we're at a uptrend Because we started down here. It went up and went back down. We bounced right here. There was a bounce So now we know that this is this is a support this support probably started it might have even started earlier Let me see. Let's we can we can we can look at that. Let's see So it would have to be here Which the price would be? Way down here that the chart didn't even go that far back, but either way We're just trying to figure out where where this is coming from You know, this is every candle represents one month If you don't know what what the different time frames mean every candle stick that you see right here represents one month Okay, as I change time frames the candlesticks represent something different So I'm looking here. I see that we're in an uptrend currently, right? And the last two months have been green the last four out of five months have been green So we're clearly in an uptrend. So now I'm going to Another thing I like to do is I like to look for resistances up here at the at the monthly So these any resistance you find that the monthly are gonna be any resistance or support you find up here Are gonna be pretty major because if they're affecting the entire month candle, then they're a very major resistance as you can see here We're currently at a 12,000 resistance this month now have we seen that resistance before yes, we have We saw it one two three three different months It hit 12,000 and dropped back below and couldn't end on top of over 12,000 The last time that we ended over 12,000 which was over here 2017 December the one that's when we hit the all-time high We closed above 12,000 and then the next month we closed below 12,000. So 12,000 is obviously a pretty major resistance zone here And then you can see and then you can look at you know, what else okay What else has been resistant so right here the 10,000 to 11,000 level has been a pretty high Resistance you can see a lot of rejections here. You can see more rejections here For reject for four months in a row rejected Last month we did close above it. So now it's flipped into a resistance, right? So now that 11,000 zone now you can say okay, that's a that's a pretty strong pretty significant support now Resit once you break over resistance resistance turns into support So that's that's definitely a good way to think about that now Now let's go this drop down now that we've you know taken in and got some idea of what's going on on The monthly chart this drop to the weekly charts now the weekly charts the same thing now What changes is each candle represents one week, right? So now we're gonna look we're zooming in a bit on what's really going on, you know so you want to you want to see exactly how Everything's been moving within that monthly those monthly candles and this breaks it down for you more so we can see You know, we we got rejected at 11 5 at 12,000 We dropped all the way down Boom and then we started back up. This was what March of this year. This is when the corona So corona really dropped us down really all the way down to 11,000 I mean, I'm sorry 3596 you could you could see it up here The O means open H means high L means close C means close L means low C means I swear to speak English L means low C means close And it tells you, you know what what happened during that time So you'll see that's when the corona hit and then ever since then we've been trending up So we can actually grab this same See like a rabbit Things like way down there now Let's grab this We can put it over here And then let's grab this other the other end and this kind of gives us an idea of where you know Where we can buy So now we're looking at it on the weekly you see on the weekly. It's been Pretty much going up here. It had a little a little bit of issue Boom when it hit this little area right here, which was 9,000 Then it took off again. So The the thought process would be okay if we start consolidating here again When we get to this part right here, right? It's a Pretty good risk reward play to enter long to see if we can break out just like we did here So that that's what we're you what we would use this for All right, so now we have a kind of an idea of what it looks like on the weekly So now I go down to the daily. So now the daily we zoom in even more, right? Now we can see exactly what's going on here We see that we have a bull flag pattern here. Let's see if we go to the weekly. Do we have a bull flag pattern? So on the weekly we had a bull flag pattern here, right? We had this bull flag pattern. So this what this is why when we were in this area we were very very very bullish this whole time and anyone that was in our group Anyone that you know follows us. They knew that we were very very bullish here This is a weekly bull flag. That is a very very high probability Long play very high probability bullish play Boom it broke out and now we're here now. It's still too early on to tell But it could we could be looking at another bullish flag right here, right? So the flag could range honestly anywhere from 11,000 to 12,000 So that's why it's kind of risky to play it right now Here because it's such a big range. It's a thousand dollar range, you know So I'm playing breakouts and some supports, but the main thing I'm playing right now is breakouts Because we want to catch the same the same break that we had here. We want to catch that That's what we're looking for. So we're gonna be playing Mostly the breakouts here unless we we pull back a little bit more closer to the 11,000 range All right, so let's go back to the daily the daily. We do have a Bull flag on the daily But it's not as high Probability as a weekly because it's a smaller time frame even though it still is a high probability setup But here we go, so we're currently consolidating on the daily, right? We're having work We're struggling getting over this 12,000. We're trying to get you know over that We have to close over it. We haven't been able to close We well we had this close and then we dropped right back down So we're trying to get a full candle close over that without you know going back down under it So yeah, that's where that's the daily so now, you know what I like to do if I'm interested in this chart I'm like, okay, so let me go down to the four hours so I go from the daily to the four-hour chart and I take a basically zoom in to what's going on in on that bull flag pattern that I'm seeing right so we can see here that It's been going up to 12 drops back to 11 Then it went back up to 12 it kind of you know just bouncing up and down consolidated it went up to 12 test it again drop back down Then consolidated its way back up slowly grind it back up went and broke through so we had like a double top a lot of times double tops People instantly think, you know, oh double top. That's a bearish sign, which could be So a lot of times when that happens it sells But you see buyers came right back in push it right back up and we broke through that time So now we're trying to you know hold that resistance so 12,000 is now resistance turned Um Support Jesus can't can't think today So yeah, so we have to stay above it so it could stay as support if we don't stay above it Then it's gonna flip back to resistance and then we're probably gonna get rejected back down to 11 to then try it again So so that's that's what we're currently looking at now if you want to then you know Once we decided like okay, we want to play this elect these 12,000 breakout, right? So what I'm gonna do is I'm gonna zoom in now to the hourly chart see what's going on in the hourly So I'm like, okay if I want to enter Ideally the the breakout is gonna be up here, right? So we want to enter above this line So that's about about 12,040. I already haven't marked out Let's say 12,050 just to be safe just because remember fit what I said about whole numbers in previous videos 12,050 would be a small psychological resistance. So we would do it above 1250. That'll be our breakout entry and Then our targets are going to be 12,200 12,300 12,400 12,500 right Now you might be asking why those are the Targets so notice That the price had like see right here It like struggled a bit getting past that and then it got past it Then when it dropped back down it kind of hung out in that area for a little bit So that tells me that there's Battles right here, right? It's a point of interest where buyers and sellers come in and it's also a whole number Psychological I always preach this so 12,200 is a good area to start off as a your first profit-taking area Then the next psychological barrier is 12,300. You see here the struggle that it had and Then above that 12,400 you see here that it bounced between 12 3 and 4 3 and 4 3 and 4 and then 500 is the major one Psychological wise just because it's in the middle and it's 500 people like that number So yeah, so that that's basically how I go about my trades and if you want to zoom in even further in You know the other time frames you can look at that. I look at sometimes. It's a 30 minute time frame So you can really get a good look at for entries This is how it is what I do for entries once I'm ready to enter This is how I find the prices I want to enter so my breakouts gonna be up here If I want to stop my stops gonna be kind of wide it would be over here if I'm playing this whole range But I would probably go for something tighter So I will probably look for something around this range 11,933 would be where is where I would place my stop If I want to go in even further the 15 minute mark, you know, 12 11,933 I like that number seems like a pretty decent number. You could go as low as 11,915 It hasn't since 12 o'clock since 1215 it has not gone under that so that would be a good stop to use so guys, that's pretty much it as far as A top-down analysis, I don't really go into Five minutes too much unless I'm I'm scalping if I'm scalping then I'll use the five-minute charts I generally don't go beyond below five minutes. So All right, so Real quick because I haven't done the question of the day yet I'm gonna just go ahead and shoot that at you guys right now The question of the day will not always be at the end of the video just these two videos these last two videos They have happened to be at the end of the video Because I was trying to focus on my speech because I apparently forgot English All right, so remember guys you can win a free month membership with our YouTube daily question of the day Is how it works every video we will have a random question about something in the video the question will always be in a Random area of the video find the question then find the answer in the video Post your answers in the comments for a chance to win a free month membership to our trading room That's a $70 value winners will be picked randomly once the video receives over 25 likes that number will change as we grow So we did 25 likes yesterday today. We're gonna change that That let's change that Real quick, but let's let's do the question of the day In a top-down technical analysis, where do you start? That is a question drop your answers below in the comments. We will pick a one random person and As far as the amount of likes since we did 25 yesterday today, we're doing 30 We need 30 likes today guys 30 likes and we will pick a winner. We're gonna keep pushing it up. So 30 likes. We're gonna go to 35 We're gonna go to 40 45 50. We got this till we hit a hundred. I think we get a hundred All right, and that's basically it guys. Here's a question of the day drop it down in the comments guys remember that To please like and subscribe hit that Bell notification on the bottom That'll help you guys Know every time that we release a video We're providing all this to you guys for free of charge plus. We're giving you guys free Memberships every time we release a video guys Nobody else is doing this stuff that we're doing right now. So if you guys Have any other questions also drop it in the comments. We love to see questions If you guys have any specific requests for us to create a video around Drop it in the comments as well. We want feedback from you guys. We just started this page again From we started we originally started two years back We just got to go in again because a lot of our videos got deleted and removed because you know how things are with in the Bitcoin niche Censorship can't say that too loud, but um, that's basically it guys. Thank you for watching. Appreciate you guys. See you on the next one