CHAPTER 7

Top-Down Workflow and Correlation

Hunting an entry on one chart is like reading the last page of a novel. This chapter builds the whole story - from the month down to the one minute.

7.1IPDA Data Ranges

The algorithm looks back over fixed windows: 20, 40 and 60 trading days. The high and low of each window are the most important pools. Mark them before anything else on the daily.

**Fig. 7.1** The 20, 40 and 60 day ranges - three layers of draw

7.2Building the HTF Bias

Bias means "which side I expect over the next one to three days". It is not a guess - it is a score. Answer these four questions.

Question	If bullish	If bearish
Monthly/weekly draw?	Upper pool untouched	Lower pool untouched
Daily structure?	BOS to the upside	BOS to the downside
Where is price?	Daily discount	Daily premium
SMT?	Correlated pair weaker	Correlated pair stronger

Three or four agreeing means a clear bias. Two against two means no bias: scalp small or not at all.

7.3The Five-Step Top-Down Process

**Fig. 7.2** The same five steps, every day, in the same order

Monthly and weekly: which side is the big draw?
Daily: draw the range, mark premium/discount, and the PD array in play.
4H and 1H: where exactly is that array? Write down its boundaries.
15m and 5m: wait for an MSS inside the killzone.
1m: the trigger - an FVG or a CE.

7.4SMT: Divergence Between Correlated Markets

If one of two correlated markets makes a new high and the other fails, the whole market does not agree. The one that failed is usually the weaker - trade that one.

**Fig. 7.3** SMT: ES prints a higher high, NQ fails - one of them is lying

Relationship	What to look for
EURUSD/GBPUSD	They usually move together; the one that fails is weaker
ES and NQ	The most reliable SMT in indices
Gold versus dollar index	Inverse; both making new highs is a warning
Yields versus indices	Rising yields pressure equities

7.5The Narrative: The Story of the Week

At the start of each week write one paragraph: "This week price should take pool X first, then deliver toward Y. My bias is wrong if Z happens." That paragraph protects you from intraday emotion.

"You are not predicting - you are building a probability and writing down its conditions."

7.6The Daily Routine

Time (Dhaka)	Task
08:00	Update weekly and daily bias, mark the DOL
12:30	Mark the Asian range high and low
13:00-16:00	London killzone: Judas and the first setup
18:30-21:00	New York killzone: the main trade
21:30	Journal, screenshots and grade

Educational material only · not financial advice.