I actually prefer what is provided in the book "RouterOS by Example":it has the usual dropping invalid and accepting input from trusted networks then it accepts established, then only accepts NEW forwards from the trusted network, then related forwards then established forwards, finally dropping all other inputs and forwards. This works perfectly. From this I also add in accepted ports for services I want accessible to the world while listing and banning those that make repeated blocked attempts as a means to protect those open ports.
The default firewall rules as set up by the quickset option probably works the same as above but only using the input chain (as per v6.19): first rule is to blindly accept all ICMP, then accept established, then related, rules for vpn go here if enabled, then drop everything on the wan interface.
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Ex: in your post, you have a "drop everything else" in the middle of the settings... how does the processor know when to "drop everything else", if the timing is not specified?
to directly answer this and to add to the answer already provided, you have to realise that there are multiple ways that data is handled by the router. Yes, the rules are from top down but you might have a few input rules at the top, followed by a deny all input rule, followed by your rules for the forwarded data, followed by say a chain created for icmp that's jumped to prior to the drop all.
Also, muchas gracias for the log option on rules now :)