A 600-point profit in the Nikkei – in one-day

John C Burford explains how you can spot low-risk opportunities for quick profits in the charts. Here, he looks at Japan's Nikkei index.

Today, I want to focus on the Nikkei chart, because it demonstrates a vital lesson in chart reading a skill I would like you all to master. That is because it can open up amazingly good and quick low-risk profit opportunities that you may have missed.

Last Friday, I showed this daily chart on the Nikkei:

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(Nikkei index x JPY 500)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 118,205
Commitments
47,30615,8092,86857,00832,436107,18251,11311,02367,092
Changes from 10/28/14 (Change in open interest: 29,497)
12,8266,1511,59414,20811,28428,62819,02986910,468
Percent of open in terest for each category of traders
40.013.42.448.227.490.743.29.356.8
Number of traders in each category (Total traders: 93)
427831217336Row 8 - Cell 7 Row 8 - Cell 8

John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.