Tramline Trading_ A practical guide to swing trading with tramlines, Elliott Waves and Fibonnaci

236 Pages·2014·12.05 MB·English

by  John Burford

Table of Contents
Cover
Publishing details
Follow us, add us, like us
The Tramline Trading Alert Service
About the author
Acknowledgements
Preface
Introduction
Part 1: The Tramline Trading Method
Chapter 1: My Charting Methods
1.1 Support and resistance
1.2 Trendlines
1.3 My favourite chart patterns
1.4 Momentum
Chapter 2: Charting With Tramlines
2.1 Drawing tramlines and the Tramline Trading Rule
2.2 How to find the best tramlines
2.3 The Prior Pivot Point (PPP)
2.4 Will the market change trend at a tramline?
2.5 Tramline trios
2.6 Setting protective stops with tramlines
2.7 When tramlines cross over – the Chinese hat
2.8 Using the third tramline to set a price target
Summary
Part 2: How To Trade The Tramline Method
Chapter 3: Trading With Tramlines, Fibonacci and Elliott Waves
3.1 The Tramline Trading Rules
3.2 Trading the tramline break
3.3 Trading the head fake
3.4 Trading the wedge
3.5 Trading the “V”
3.6 Trading the kiss and scalded cat bounce
3.7 How to use Fibonacci levels
3.8 Using basic Elliott Wave Theory concepts
3.9 Context is key
Summary
Chapter 4: My Five Best Trade Setups
4.1 The A-B-C setup
4.2 The tramline break and kiss
4.3 The Fibonacci 62% retrace
4.4 The tramline bounce
4.5 The third wave
Summary
Part 3: My Trading Diary
Introduction to my trading campaigns in gold and the Dow
The Gold Campaign
The Dow Campaign
My Eleven Commandments
Resources
Add to your Harriman House trading library
Diary of a Currency Trader
Supertiming: The Unique Elliott Wave System
Publishing details
HARRIMAN HOUSE LTD
3A Penns Road
Petersfield
Hampshire
GU32 2EW
GREAT BRITAIN
Tel: [phone]
Email:
Follow us, add us, like us
www.harriman-house.com
www.twitter.com/harrimanhouse
www.facebook.com/harrimanhouse
www.linkedin.com/company/harriman-house
The Tramline Trading Alert Service
Many books on trading the financial markets leave you high and dry after you
have finished reading. I decided to change all of that. With my Tramline Trading
Alert service, you can follow what I am doing as I analyse promising trade
setups.
My plan is to issue from three to five email Alerts a month, with each Alert
containing several trade setups. I will cover all major currency crosses, major
stock indexes, gold, interest rate futures, and an occasional individual share.
As you receive my Alerts, you will see my top trade setups come to life. This is
like having me look over your shoulder as you study the markets!
Visit tramlinetradingalerts.com for more information and to sign up for the
Alerts.
About the author
John trained as a physicist and holds a PhD in Physics from the University of
Toronto. He worked for a time for NASA in Washington D.C. in the Manned
Mars Exploration Team. After leaving, he discovered the financial markets and
has been involved with them on and off for over thirty years. John was a
Commodity Trading Advisor for a period at a Los Angeles commodities trading
firm.
He has started and sold several real businesses, and now devotes full time to
training, writing, trading and consulting on the markets.
John is Editor of MoneyWeek Trader, an email service aimed largely at UK-
based spread-betters. He also operates his personal blog at tramlinetraders.com.
Acknowledgements
I wish to gratefully thank all of my early-year school teachers who helped shape
my life, all the while suffering my in-born contrarian nature. My very first
school report at the tender age of five definitively stated: “John is very erratic.” I
have been striving to rein in the most extreme manifestations of this trait ever
since.
In the same spirit, I wish to thank all of those many traders who extracted my
trading tuition fees from my early accounts. I’m sure they did not realise it, but
they were performing a great service to me. Perhaps those very same traders
went through an identical process themselves and considered their success also
was based on their own early expensive lessons. Is there anything new under the
sun?
But my most vivid trading lesson was given to me by Mark – a fellow
commodity broker – who managed to short the S&P on the Friday before 19
October 1987. When the market opened on Black Monday with a huge gap
down, he added to his shorts. By the close of trading, his $30k account had
swelled to over half a million dollars. In 1987 that was real money! However,
when the market started up on Tuesday he kept shorting on the way up. This was
a fatal mistake, because the market recovered so far that he was wiped out.
So, thanks Mark, for having taught me that when I have a massive windfall
profit, it is best to take at least some of those profits off the table. Also, I learned
then that it is fatal to fight the market, no matter how strong your belief.
A further early lesson was provided by another former colleague, Peter, who
taught me that the art of market forecasting is a vastly different skill from that of
trading. Peter was an excellent predictor of trends, but constantly lost money
when he traded. This was because he did not have the courage of his convictions
at the right time and was always getting in too late just before a big counter-trend
move.
Both Mark and Peter were futures brokers at the same commission house in Los
Angeles where I cut my trading teeth. This gave me the invaluable opportunity
of observing at first hand the many destructive habits that some of the firm’s
customers were prone to.
That was yet another lesson I learned – that trading is unlike a more
conventional activity, such as being a doctor or lawyer. So my thanks to all of
these customers who showed me that I had better get a proper understanding of
how the markets really work, which is still today appreciated by only a fraction
of people.
Finally, while writing this book I had the loyal companionship of my Jack
Russell Dixie, who provided critical approval of all I wrote. All she asked in
return was a daily walk at 9:30 am, prompt.