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

Tracking Trends of AT&T

Let’s track the trends of AT&T.

In the chart below the price is above the Kijun-sen so the short-term trend is Bullish.
(been going above and below for three days)
The Tenkan-sen is below the Kijun-sen so the medium-term trend is Bearish.
(been that way for nine trading days)
Price is below the Cloud so the long-term trend is Bearish.
(been that way for 57 trading days)


Fast forward one week.
Short-Term Trend = Bullish (7 days)
Medium-Term Trend = Bullish (4 days)
Long-Term Trend = Neutral (5 days)


Fast forward one week.
Short-Term Trend = Bullish (12 days)
Medium-Term Trend = Bullish (9 days)
Long-Term Trend = Bullish (2 days)


Fast forward one week.
Short-Term Trend = Bullish (2 days w/ close above Kijun-sen)
Medium-Term Trend = Bullish (14 days)
Long-Term Trend = Neutral (4 days)


Fast forward one week.
Short-Term Trend = Bearish (4 days)
Medium-Term Trend = Bullish (19 days)
Long-Term Trend = Neutral (9 days)


Fast forward one week.
Short-Term Trend = Bearish (9 days)
Medium-Term Trend = Bearish (5 days)
Long-Term Trend = Neutral (1 day, notice close below the Cloud on the previous day)


We’ve caught up with the current market. At the time of this writing, this is where AT&T is at.

This is an example of how the short term trend changed first, then the medium, then the long.

Price action tried to get out of the top of the Cloud and failed but gave us a 3-day Bullish long-term trend.

Then the price tried to break through the bottom of the Cloud and failed. We currently have Bearish short and medium trends as we approach the Kumo Twist. The future Kumo Senkou Span B line is in the same zone as the flat Kijun-sen just behind us. That is the resistance above. We are running out of Cloud below as support.

Based on this alone, would you initiate a buy here? What about a short?

The charting platform used for this analysis is provided by Charles Schwab and is called TOS or ThinkorSwim.