Tramline trading the oil market - the next phase

John C Burford explains how to line up promising trades in the oil markets using his 'tramline trading' method.

In my last post, I showed one way to use my tramline trading method, using an example from the crude oil market. I'd like to continue focusing on this market. When trading pushes through an existing tramline, you need to start looking for a new pair. I'll show you how to do so, even at the very early stages.

Recall the final chart from last time:

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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.