How to decide where to set your tramlines

John C Burford explains how he sets the tramlines on his trading charts, and how he uses them to enter trades and decide where to take profits.

In my recent posts, I have leaned heavily on my tramline trading approach to ferret out promising trades. I have given several examples in most time-frames.

But recently, I have been asked how I know where to set the tramlines, given all the various possibilities.

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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.