Traders & Investors Club

Author:

John Burford

Video Presentation...

Reviewer Rating:

5

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John Burford is well-known for his Money Week Trader newsletter from which many of the full-colour illustrated charts featured in his new book, Tramline Trading, have been taken.

I mention John's newsletter early in this review because he is most certainly not the kind of analyst whose stock in trade is predicting the past. His market calls, based upon his Tramline Trading technique, are published three times a week in his newsletter for all to see and are well-annotated, as are the numerous trade examples discussed in the book.

For a relatively slim volume, Tramline Trading is packed with useful trading techniques that are explained with great clarity. Where space does not allow for in-depth explanation, a useful directory of resources is provided at the back of the book that will point the reader in the right direction for further study.

John's trading strategy is based upon the time-proven charting technique of plotting channels within which price action is very often contained. He explains everything that the reader needs to know in order to identify significant support and resistance levels on any chart and reveals his original techniques for identifying and plotting the trendlines, which form the backbone of the Tramline Trading methodology.

However, this is just the beginning.

John introduces several additional techniques that he uses in his trading arsenal including Elliott Wave, his personal favourite chart patterns, momentum indicators, Fibonacci levels, the Commitment Of Traders report and some intermarket analysis added to the mix for good measure.

As an enthusiastic proponent of Elliott Wave myself, I am very aware of the strong emotions that the technique evokes. However, when John introduces Elliott Wave in the context of his tramlines, the relative simplicity and potential rewards of the methodology become very clear.

The Tramline Trading technique appeals to my personal style of trading because it largely concentrates upon identifying likely reversal points in the market, which enables trades to be entered with tight stop losses, These trades tend to have the highest reward/risk ratios whilst preserving trading capital.

The Tramline Trading technique is a fully-formed and objective methodology. If applied as suggested in the book, the trendlines and indicators that John illustrates will tame the most erratic looking price action.  To identify a wave five top about to touch a tramline accompanied by momentum divergence is a thing of beauty indeed. John's book will show you how to discover such trade setups on a regular basis.    .

In summary, Tramline Trading is an excellent introduction to several classic visual charting techniques, clearly explained and illustrated which, if applied together with sensible money management,  will provide the reader with a profitable trading strategy that can be deployed across multiple timeframes.

You can view John's presentation on his Tramline Trading technique here.