Hunting for trends in the oil market

When spread betting, having a strategy for entering and exiting the market is crucial if you want to be a successful trader. John C Burford shows how a simple pair of parallel lines can help.

I am always on the lookout for tramlines on my charts. Tramlines are simply parallel lines of support (on dips) and resistance (on rallies). I like to picture my charts as consisting of periods of trading between pretty well-defined tramlines. The lines act as mirrors that the market bounces off.

In several previous emails I have shown some impressive examples of tramlines at work.

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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.