Top Down / Up Analysis

A daily practice

Pull up the daily chart, and tell me:

1, 2, 3 are the 3 daily closes outside the oversold zone -> stochastic embedding.

  1. Where was the last broken trend line? What does that mean for the current direction?
  2. How Far can you go in that direction? (Energy Bands)
  3. How Far would the daily fuel limit support the move without trending?
  4. What wave are you in? Whoop, Bam or Boogie?
  5. Talk about the interactions with the comfort levels
  6. How does the market behave around overbought / oversold? – does it stay embedded? = Trending
  7. Was there any volatility breach on the CI? Has the outside value it been beat for a reversal to take place?

Pull up the 30-minute chart and talk about it

  1. What market segment are you in? (Neutral, Bear Zone 1, 2 or Bull Zone 1,2)
  2. If the market is trending or is in Bear / Bull Zone, you should fade the attacks on the E-16 if the Purple Haze hasn’t been attacked twice.
  3. What are the last Boogie Fail lines (4, 16, 26 and 36 pips out)?
  4. Stochastic bars… Do they show a head by not being present on the last run?
  5. Can you spot the last two continuation divergences on the RSI2? Wave 2 and Wave 4 end points?
  6. If you have holdings not aligned with the direction you must hedge / over compensate 2-pips above the high / 2-pips below the arrow of a counter-directional arrow and hold

Pull up the hourly chart, and talk about it

  1. What are the 4H support and resistance numbers (Comfort levels)?
  2. Are the mid-term memory support levels mostly above or below?
  3. What is your suggested maximum naked risk size?
  4. What is the current balance of your holdings?
  5. The stochastic combo is your timer for getting in on the direction (is the 30-sample D embedded?)
  6. The conditional buys / sells (s/c, b/c) need fine tuning by the use of a 30-minute chart