The question posed in the title of this article really should be reversed and posed: Did John Templeton’s formula (using price action to determine a successful forex trade) consistently fail? And the answer is: No. He hasn’t. Not in all the years since there was has been markets in which to trade. In fact, it is what many, if not most, successful professional forex traders use as their primary guide to finding successful trading opportunities.
According to John, if you are looking for a trading robot (also known as “Expert Advisors” or EAs) to help you trade the forex market, you are barking up the wrong tree when it comes to finding profitable trades. “The trading markets are too complicated to let a robot do the trading for you.” There are too many variables that can come into play for any forex trader worth his salt to allow a robot to do the trading for him. On top of that, it just doesn’t make any sense, at least with the data most of these bots are programmed to collect and decrypt. In other words, the data they are considering and deciphering is not always actionable data.
And what about those who trade using “special indicators”? Special indicators are interesting in theory; and they are certainly an intriguing selling point for those selling forex trading strategies based on the use of these indicators. However, they only tell you what they have Already happened. They show a trend already in the middle of their life cycle. But they certainly can’t predict where the market is headed for much longer. And by the time you enter your trade using these indicators, you have already lost half of the profit you made. maybe Have made. So how cool is that!
Let’s examine an indicator like stochastic. According to so-called “experts”, this indicator is meant to show you when the market is oversold or overbought. But how does this apply to the forex market, where what you are buying is one currency against another and not product-oriented stocks that are competing with similar product-oriented stocks? As John asks, “Just because this indicator tells you a currency is overbought or oversold, does that really mean it’s time to buy or sell?” The forex market is a different animal from traditional commodity or product oriented stock investments.
John sees himself as a technical trader who focuses like a laser beam on price action, which is why he outlines all these nifty theorems for investing in the forex market. “Once traders can get rid of this kind of mindset and start focusing on what is important to a technical trader, which is price movement, then he can start calling himself a trader.” Finding potentially profitable trades based on price movement or price action is John’s educational material. Trade in the Buff teaches
And you’re not just launching your forex trading product; he speaks from experience: “When I started trading forex, I had to take my bundles, just like anyone else. I bought one device after another. And after all that, it became clear to me. No device is going to work. for me. I wasn’t going to be able to push a button and become a millionaire.”
Instead, he crouched down and began studying the only forex trading signals he needed to know which currency pairs to trade: price movement. The currencies you invest in vary based on market conditions, which are always in a state of flux. Market conditions are going to change depending on whether it is a ranging market or a trending market. But you have to be able to see basic stats and know what you’re looking at in order to tell what’s going on at the current moment.
Trendy forex trading systems come and go, just like any other trending trade. However, if you really want to make money trading the foreign exchange market, you’d better pay attention to the basics. And that means watching the price action and the fundamentals that move the price action. That’s where the actionable data is.
