How to select tramlines in a tricky market

Placing accurate 'tramlines' on a chart can hold the key for a great trade. John C Burford explains how to do it with a trade in the tricky GBP/USD market.

Today I want to show how tramlineselection can be tricky at certain times. To illustrate this point, I have selected the GBP/USD. This market is notorious for its many spiky and zig-zaggy moves behaviour that often makes it very difficult to pinpoint accurate and best tramline placement.

Let's start with the market background.

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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.