---
title: 'Top Down Analysis - ICT Concepts'
source: 'https://youtube.com/watch?v=wDXTIDbIMwU'
video_id: 'wDXTIDbIMwU'
date: 2026-07-05
duration_sec: 0
---

# Top Down Analysis - ICT Concepts

> Source: [Top Down Analysis - ICT Concepts](https://youtube.com/watch?v=wDXTIDbIMwU)

## Summary

This video demonstrates a top-down analysis approach for trading, starting from higher time frames like the daily chart and drilling down to lower time frames such as 5-minute and 1-minute charts to identify entry points. The trader explains how they mark points of interest, order blocks, and fair value gaps to anticipate price movements and execute trades with reduced risk.

### Key Points

- **Time Frame Dependency** [00:09] — The analysis depends on the entry time frame. For lower time frames (5 min, 1 min, sub-1 min), points of interest are taken from daily, 4-hour, 1-hour, and 15-minute charts, not monthly or weekly.
- **Daily Chart Analysis** [00:50] — Start on the daily chart: identify previous highs, order blocks, and internal liquidity. Mark fair value gaps and order blocks as downside targets.
- **Four Hour and One Hour Charts** [02:01] — Move to 4-hour chart, mark order blocks from New York AM session. Then check 1-hour chart for additional points of interest.
- **Lower Time Frame Entries** [02:54] — Use 15, 5, and 1-minute charts to find entries reaching for higher time frame points of interest. Look for fair value gaps, liquidity runs, and displacement moves.
- **Entry Execution** [05:36] — Enter trades using lower time frame setups (e.g., 15-second chart) to reduce risk. Look for retests of previous lows, fair value gaps, and displacement moves.
- **Conclusion of Top-Down Analysis** [07:08] — Start from daily, go to 4-hour, 1-hour, 15-minute, then use lower time frames for entries. Identify draw on liquidity and use setups like OTE (Optimal Trade Entry).

### Conclusion

The top-down analysis method helps traders align entries with higher time frame points of interest, reducing risk by using lower time frame setups. The key is to identify where price wants to reach and then find low-risk entries on smaller charts.

## Transcript

analysis and the one thing I need to mention is this is dependent on which time frame you're entering on if I am entering on the lower time frame such as five minute one minute and sub one minute time frames I'm not really gonna
look for monthly or weekly points of interest to enter off those most of my points of interest lie on The Daily 4 Hour one hour and sometimes the 15-minute chart if I am for example gonna trade or enter on the four hour
time frame then I would look out to the weekly or other time frames in this video we will go over how I do top down analysis currently using entry time frame such as five minute one minute and lower time frames so with that we will
begin on The Daily and work our way down so the first thing I notice on The Daily is I zoom in to where we are currently and look at this price section from here I see we had previous highs and then when we are above these previous highs I
look left and we have an order block sitting here which we respected as we couldn't close above it then I notice after we reach into this order block we start to move lower before news driven events send us higher taking this High
we close back into the range retest this previous high before displacing lower where are we targeting on this displacement move down we have internal liquidity rested here that we moved and
most importantly this place under when we displace under lows right here we want to see if we fall back into the range or reach lower on The Daily here if we're going to fall back into the range and point of Interest would be
right here as that is where the fair value Gap is filled and then this block right here as this would be the next downside Target I would have and I do include the wick to the open on these as that is the most sensitive part
that would be my daily chart annotations as that is all I really want to Mark out or would be interested in I then move down to the four hour chart here you can see we have that previous slope which we may retest but I am going
to move us to New York am session as that is what I trade as I move forward to the New York am session what I notice is we have this session what I notice is we have this block right here so I will Mark out the
body to the wick of the series of up close candles and that would be my four close candles and that would be my four hour point of Interest after this I drop down to the one hour chart and look for anything there not a whole lot to really
be seen in my opinion but as we move forward towards New York open we do get these candles moving out of this area with that in mind go down to the 15 minute now that I have my higher time
frame points of interest on the chart I will look at lower time frames from the 15 5 and 1 minute to look to either gain entries reaching for these points of interest or when we reach into a point of interest and move away from it so the
first things I notice here is we have a reach below here a reach higher and then this fair value Gap gets reached into before a displacement move up what I will notice is the previous
lows before RAM and I would like to see those retested but we have internal range liquidity resting here as well so this is actually a move I missed during the live session but after annotating it I shouldn't have
missed it and if we notice after open we reach below run people out of their position here into the fair value Gap as well as off and then we get an aggressive move up seeing this I think to myself Are we
more likely to reach lower here or reach up for this point of interest and to me this point of Interest makes more sense so with this idea in mind I'm bullish off the opening drive move and from that I will go down to the lower time frames
looking at the five minute chart as we move forward you notice we have a nice I'm under the mindset that we are reaching for this four hour block here I'd want to see this being respected so if price moves into it on a lower time
frame we drop down look at the one minute which lines up with the five minute fair value Gap let's have a look right here now as we reach down to here I don't really want to focus on just the
one minute time frame because the only entry I would get is after closing or retesting these previous lows right here and I want to enter down here so that is when I go down to the lower time frame and wait for our setup here
which if you notice we reach into this fair value Gap that's one minute Fireball you go we fill it before getting an aggressive move out here this is where I'll look at previous lows and the box set up here to
look for a long entry and if you saw my last last video I mentioned this as well that is what I would look for you get a move retest and reach above now if you remember we got for the one minute I was saying
minute entry we want to see this respected and closed above to reach for new highs we get a news event but if you notice we cannot close below this area and then we reach for new applies so
that is how I would take a trade from one point of interest to another using the lower time frame setup to reduce my risk once we're up into this area I want to look for the 2022 model or other models which normally look like this we
don't always get that right we don't always get the liquidity run breaker always get the liquidity run breaker structure clean farewell you have setup
be searching for these lows or moving to our other point of Interest going from that is when I look for lower time rate of setups within mitigation blocks or other entries to get an entry for
example we go to the 15 second time frame and you can see we have fair value gaps in here which give low risk entries to reach for the objective and there we go going back out to our
five minute time frame we are reaching for these lows so once we reach them what do we want to look for we want to look for either this placement back into the range which would lead us higher failure to displace back into the range
downside and we put in this block right here where we fail to displace above and start to move lower when this low is invalidated I can look for lower time frame entries region for that daily
blocks open so going down to something like a 15 second chart here this low is invalidated so then can look for some sort of setup short
some sort of setup short such as a return to an OTE such as a return to an OTE right there not trade the afternoon session so I won't go any further but that is how I
use top-down analysis I started my daily time frame go to the four hour one hour 15 and once I know where my draw on liquidity is or where price is wanting to reach for then I will use lower time frame setups to gain entry
I hope you found this video helpful if you have any comments or questions please leave them in the comments below I do my best to get to every single one of them and I hope you enjoyed it and I will see you in the next video see ya