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What is bottom-up analysis in trading?

Bottom-up analysis focuses on individual instruments first, then considers broader context. For example, a trader identifies a bullish chart pattern on AUD/USD, then checks whether global risk sentiment supports the trade. This approach emphasizes technical setups but still acknowledges fundamentals. Bottom-up is more suitable for short-term traders who prioritize immediate opportunities but want to avoid surprises from macro events. Combining bottom-up with top-down methods improves accuracy and reduces blind spots.