Question:

What is meant by the flow of energy from the highest to the lowest in this paragraph?

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There is an occult law that power flows from the higher to the lower potential, not the other way around. Therefore, always imagine the best possible outcome, and the forming of reality will follow this design.

"and how is this flow related to imagining the best possible?

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  1. Well, to quote an over quoted axiom of western occultism from the Emerald Tablet of Hermes, "That which is below is a reflection of that which is above."  This has been translated and worded many different ways, but essentially is means that which exists on the more subtle levels of existence manifest themselves ultimately into the physical plane.  

    To cite something a little less occult there are even physical ailments that are directly a cause of the psychology of the individual.  The mind has a very important impact on the body.  If you were to, let's say, imagine yourself in perfect health all day every day this would have a positive impact on your health.

    i.e. mental, emotional, spiritual, etc. are more volatile or "higher" and the physical is fixed or "lower"

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