Top-Down Analysis Definition
Top-Down Analysis is a method of analysis that formulates an overview of a system first, and then details the subsystems breaking down the "big picture".
In case of fundamental stock analysis the overall picture can be a macroeconomic trend, then the best sectors or industries are identified, and as the final step companies within those sectors or industries are analyzed. Technical analysts first examine longer term charts to determine the asset's trend, and then move to a smaller time frame of charts.