Yes, you've got it absolutely correct: needles at the top, knitting right side out and going down from the needles. Knitting obeys the Laws of Gravity whether it's knitted flat or in the round. (Sometimes that's the only laws it obeys!)
An English Knitter (nationality and method).
FO: Downton Hat
Call me either Clutter or Julie (my real name), if you find it easier to type than Dclutterchique.