The benefits of patience when looking for an entry point

The euro and the US stockmarket have been moving in tandem lately. John C Burford examines whether looking at one market can lead to an entry point to short the other.

In my last post, I used the recent action in the EUR/USD as a terrific working example of how I use my trading methods in particular, how I use a combination of Fibonacci retrace levels with my own tramline targets.

On the last chart, I projected the 1.4450 level would be a major target. At this level, the rally would carry to the Fibonacci 50% retrace of the big move down from 1.49 to the recent low at 1.39.

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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.