Top-down analysis uses monthly highs/lows as price magnets backed by statistical data.

So when we talk about top-down analysis and where's the drawn liquidity? Oh, we have a monthly high above us. You know, what's the likelihood that we're going to take that out and then trade lower? These liquidity levels are backed up by the data. Price statistically moves between these liquidity pools and it's even more likely on the high timeframe than it is on just the daily timeframe. So this map that we're going to be building, this top-down analysis that you already know how to do, it's backed up by data. Those monthly highs and lows, equal highs and lows, weekly highs and lows, et cetera, those magnets for price that we eventually think we're going to trade to, it's backed up by actual data.