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).
Feel free to call me either Clutter or Julie (my real name).
A sweater of a thousand yards begins with a single stitch. Lao-tzu's Granny