Precourse
Module 1 – How to Track Price Action on Ichimoku Charts
Module 2 – Finding Support and Resistance
Module 3 – Reading the Charts
Postcourse

Introduction to Tracking Price Action

Module 1 – How to Track Price Action on Ichimoku Charts


In learning the 3 Pass Process, the last step was looking at price itself. From now on, price action will be the first thing we look at.

As a refresher and for those who didn’t take Course 02 we’ll quickly go over the 3 Pass Process.

3 Pass Process

In the 3 Pass Process, we look at each line in three ways.

1. Environment – Main Trend and End Trend
Look at the overall line on the chart then focus on the right end of the line. 

2. Personality – Highs, Lows, and especially Plateaus
Locate the different highs and lows. Notice the levels and how long each plateau is.

3. Price Dance – Rides, Touches, and Crosses
Price action tends to ride above or below each line. Observe if it is above or below and what it does when it touches or crosses.

In learning the 3 Pass Process we looked at the shortest time frame first, the Tenkan-sen. This was to become accustomed to the parts of the Ichimoku system. We did this because the Kumo is based on the calculations from the Tenkan-sen and Kijun-sen.

Now we will start with the longest time frame first because it is the most important. The Kumo is the most important part of the Ichimoku system and price action is more important than the Kumo.

For this reason, we will now look at price action first then see how it relates to the lines of the system.

Course 02 – Learning Ichimoku
    1. Tenkan-sen
     2. Kijun-sen
     3. Chikou Span
     4. Kumo
     5. Price Action

 

Course 03 – Reading Charts
     1. Price Action
     2. Kumo
     3. Kijun-sen
     4. Tenkan-sen
     5. Chikou Span

When looking at a chart:
     1. first look at price action
     2. then the Kumo
     3. next, the Kijun-sen
     4. then the Tenkan-sen
     5. finally, evaluate the Chikou Span

Because of your training, it will take seconds to see what is going on with these different elements.

Module Objectives

After taking this module you’ll be able to:
  • spot short, medium, and long term trends
  • identify price action on charts
  • relate price action to Ichimoku lines
  • know questions to ask charts