The dollar has turned in the charts

The pound's rally has ended, and it's the turn of the dollar to take over. John C Burford goes in search of the elusive turning point.

I have pointed out before that different markets possess different characters. And one of the biggest differences between markets is the nature of the shape of the large market turns. These are the turns that produce the major highs and lows on the daily and weekly charts that we are familiar with.

The large-cap stock market indexes such as the Dow and the S&P make the most of their major tops in a fairly smooth rolling-over fashion. But in markets such as currencies, gold and crude oil, the tops are more often made in a far more spiky manner.

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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.