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

Support and Resistance Zones Examples – Kellogg & Apple

Chart Order:
Weekly with just Ichimoku
Weekly with support and resistance lines
Daily
Daily with 200-period simple moving average
Monthly
Monthly with Fibonacci Retracement
Daily – January 1, 2013
Daily + one month – February 1, 2013
Daily + two months – March 1, 2013

K – Kellogg Company

Weekly with just Ichimoku


Weekly with support and resistance lines
Top – Small flat plateau of Tenkan-sen.
Middle – Long flat top of Kumo (Senkou Span B).
Bottom – Whole number (52) between flat Kumo and flat Kijun-sen.


Daily showing lines from the weekly
Top – Lines up with the daily flat bottom of the Cloud.
Middle – Lines up with flat Kijun-sen that happens after Tenkan-sen Kijun-sen cross.
Bottom – Just below the flat bottom of Cloud.


Daily with 200-period simple moving average added in.
The zone around the 200 held as support above the last Kumo twist.


Monthly Chart
The top line is at the bottom of the last monthly candle.
The bottom line is at monthly Tenkan and Kijun-sen.


The top of the Fibonacci line is now being tested.
The 78.6 lines up with our middle line.


Daily shows us bouncing off the top Fibonacci resistance and now heading to test our top line which is support below us.

The day after the last chart Kellogg gaps up above both the daily Tenkan-sen and Kijun-sen. Then a few days of consolidation before testing the top Fib line. There was an initial failure with a gap down open at the Kijun-sen support. Price rose throughout the day to the Tenkan-sen. The next day it gaps up over the Fib top line. We now have a healthy Tenkan-sen Kijun-sen channel on the daily.


Someone eats their Special K as the price action continues to climb. Four days ago it contemplates testing the Kijun-sen but decides against it. Our weekly lines we drew are now far below us.

Chart Order:
Weekly with just Ichimoku
Weekly with support and resistance lines
Daily
Daily with 200-period simple moving average
Monthly
Monthly with Fibonacci Retracement
Daily – January 1, 2013
Daily + one month – February 1, 2013
Daily + two months – March 1, 2013

AAPL – Apple Inc.

Weekly with just Ichimoku


Weekly with support and resistance lines
Top – Kijun-sen
Middle – flat Kumo top of Cloud
Bottom – flat Kumo bottom of Cloud


Back to the daily we see the top line corresponds to a flat Kumo top, the middle aligns with the Kijun-sen and the bottom gives us a support area that we didn’t have on the daily before.


Adding in the 200 shows it might have been part of the resistance zone on the last high push. The curve of the 200 is rounding off which is not a good sign. Being under the daily 200 is not a good sign either. Currently, this is a long-term bearish chart.


Here we are on a monthly. Yep, that’s Apple at $1 a share back in 2003. Does anyone want to go on a time travel trip?
While the daily is decidedly bearish, the monthly is still bullish.


Our last low point was back in 2009. The 23.6 line matches a flat Kumo area.


Back on the daily, we see the Fib top right above the last Kumo twist and the Fib 78.6 line is at the resistance zone of our middle line.


Looks like the apple fell off the tree. We have a failed test of the middle line resistance zone and it holds as resistance. We fall to the bottom line support zone then have a huge gap down under. Looks like the 61.8 Fib line is currently our support zone area. This is a good example of how a Fib can show support that is not indicated by the Ichimoku.


Another good example of this exercise as our bottom line, in addition to the Kijun-sen, acts as resistance on that last push up. We are now testing the support from the 61.8 zone for the third time. The Tenkan-sen is now resistance above falling price as the Kijun-sen Tenkan-sen channel lengthens.