Top-Down Analysis

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Dictionary Says

Definition of 'Top-Down Analysis'

A method of analysis that involves looking at the "big picture" first, and then analyzing the details of smaller components. By first analyzing the overall picture, such as a macroeconomic trend, an investor can start narrowing potential companies to analyze. A trader that uses technical analysis may use top-down analysis as part of their trading system. 
Investopedia Says

Investopedia explains 'Top-Down Analysis'

A day trader may first analyze daily or weekly charts to determine the asset's longer term trend, and strong support and resistance levels; and then move to a smaller time frame of charts, to determine a good entry point. For example, if an asset is trending upwards on the daily chart, and there is good bullish momentum on the hourly chart, a trader using top-down analysis could then move to a 15 minute chart and find a good entry point for a long position.
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'Top-Down Analysis'

  • Top-Down Analysis: Finding The Right Stocks And Sectors

    http://www.investopedia.com/articles/trading/09/technical-top-down-sector-stock.asp
    Top-Down Analysis: Finding The Right Stocks And Sectors. ...

  • 4 Top-Down Stocks For Your Portfolio

    http://stocks.investopedia.com/stock-analysis/2010/4-Top-Down-Stocks-For-Your-Portfolio-CF-MON-FCX-DVA0217.aspx
    ... Get Free Stock Analysis By Email. The answer may lie in focusing on top-down analysis
    honing in on specific themes - areas of the economy you feel will benefit ...

  • Technical Top-Down Investing: Analyzing The Market

    http://www.investopedia.com/articles/trading/09/technical-top-down-investing.asp
    ... Conclusion A good analysis of the market does not have to take a lot of time. ... and
    how these two styles can be used together in Where Top Down Meets Bottoms Up ...

  • A Top-Down Approach To Investing

    http://www.investopedia.com/articles/stocks/06/topdownapproach.asp
    ... This final phase of the top-down approach can often be the most intensive because
    it involves analysis of individual stocks from a number of perspectives. ...

  • What's the difference between "top-down" and "bottom-up" investing ...

    http://www.investopedia.com/ask/answers/193.asp
    ... Investing; Mutual Funds; Stocks; Fundamental Analysis; Professional Education; Young
    Investors; ... What's the difference between "top-down" and "bottom-up" investing ...

  • Where Top Down Meets Bottoms Up

    http://www.investopedia.com/articles/stocks/07/topdownbottomup.asp
    Where Top Down Meets Bottoms Up. January 08 ... Top-Down Research Top-down research
    begins by thinking about the big picture. Top-down ...

  • Hot Stocks To Start 2011

    http://stocks.investopedia.com/stock-analysis/2011/Hot-Stocks-To-Start-2011-JKS-CAM-PTEN-AMAT-NVLS-BCS-BBVA0302.aspx
    ... in a more positive direction. (For more, see Top-Down Analysis: Finding
    The Right Stocks And Sectors.). Use the Investopedia Stock ...

  • 4 Top Chip Buys

    http://stocks.investopedia.com/stock-analysis/moneyshow/4TopChipBuys.aspx
    ... networks. Get Free Stock Analysis By Email. But ... cycle. The top-down case for
    investing in the semiconductor industry is simple. Demand ...

  • World Wrestling Grapples With Competitive Threat

    http://stocks.investopedia.com/stock-analysis/2011/World-Wrestling-Grapples-With-Competitive-Threat-WWE-LYV-THQ0426.aspx
    ... The question is: has the WWE finally met its match? (For more on company analysis,
    read Top-Down Analysis: Finding The Right Stocks And Sectors.). ...

  • FedEx Is Delivering The Recovery

    http://stocks.investopedia.com/stock-analysis/2010/FedEx-Is-Delivering-The-Recovery-FDX-IYT-ODFL-GWR-UPS-DRYS-FRO0618.aspx
    ... (For related reading, check out Top-Down Analysis: Finding The Right Stocks
    And Sectors.). Go With The Boats, Or Go With The Rails? ...

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