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<p id="isPasted">Top-down analysis, also known as top-down investing or top-down approach, is an investment strategy that involves examining and analyzing the broader economic and market factors before focusing on individual securities or specific sectors. It is a systematic approach that starts with a macro perspective and then narrows down to micro-level considerations.</p><p>In top-down analysis, the investor or analyst begins by evaluating the overall macroeconomic environment, including factors such as GDP growth, inflation rates, interest rates, geopolitical conditions, and other macro indicators. This assessment helps provide a big-picture understanding of the economic landscape and potential trends that could impact various sectors …</p>
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<p id="isPasted">Top-down analysis is an approach to analyzing the market that begins by looking at the big picture, before narrowing it down to specific trades.</p><p>The first step in top-down analysis is to identify the major trends in the market. This can be done by analyzing long-term charts, such as weekly or daily charts, and identifying key support and resistance levels.</p><p>Once the major trends have been identified, traders can then move down to the shorter-term charts, such as four- or one-hour charts, to look for potential entry and exit points. By analyzing the market in this way, traders can get …</p>
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<p>In summary, a top-down analysis is when investors first take a broad picture of the economies and sectors they want to invest in. It means that they assess the economic growth rates of different countries across the globe. Once they have identified potential countries, they choose specific sectors that seem to be flourishing in that country. The last step is to pick firms thriving in that particular industry, which they then invest in. It is a funnel approach to selecting investment opportunities, as the top-down analysis name implies.</p>
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