It’s time for new tramlines in the pound/dollar charts

Even the best trading channels do not last forever, says John C Burford. That's why traders should always be on the look out for new ones.

When I last covered the GBP/USD on 23 October, I had a very good tramline pair working. There were several possible swing trades up to that date. This meant that buying near the lower tramline and selling near the upper tramline would have produced some tasty profits.

And that is the definition of a good tramline pair placement: when traders can take profits by trading off them.

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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.