Top-down analysis As the name implies, top-down analysis starts by analyzing the big picture and working your way down. The industrials offers another great example of how a top-down analysis may work. Bottom-up analysis Bottom-up analysis works in the opposite direction. By combining the top-down view with the bottom-up view, the hope is to identify "great houses, in great neighborhoods." As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

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