How to trade a fast-moving market

The pound versus dollar market is giving a text book example of how to use chart-trading methods, says John C Burford.

As many of my readers know, I have a few favourite trade set-ups that I illustrate from time to time using current charts. One of these is the five up/three down (or three/down five up). And that pattern is running on cable (GBP/USD) at the moment.

Perhaps I should call it the 'five/three' from here. The two numbers refer a particular wave pattern that is clearly recognisable even when the pattern is in progress. Of course, it is of no use to a trader to see the pattern after it has completed there is no profit in doing that. But at various points during the pattern, there are several clues as to where to enter trades. You can anticipate the outcome with high accuracy and what trader would not want to have this information?

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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.