How to find your next price target using tramlines

Recent action in the Dow Jones index has provided a near-textbook case of target-spotting for John C Burford. Here, he explains how tramlines help him find entry and exit points for trades.

Recent action in the Dow Jones index is giving me a near-textbook case of target spotting.

Below is the situation as of late April, when the market had rallied into new high ground following the 18 April low:

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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.