A True Assessment Of John Templeton's Trading In The Buff Foreign Currency Course

John Templeton, who has been involved in forex day trading for more than half a decade and who is the creator of the Trading in the Buff forex signal system, soon learned that all the complicated ways that traders use to pick a profitable forex trade were only muddying the field for him. "I was basically just an inanimate object waiting for arbitrary lines to cross, telling me that I should open or close a trade. Then it dawned on me. How in the world could I make money trading currency exchange, if I don't even know what I am looking at?"

This is when John determined to take the bull by the horns and to figure things out for himself. No more accepting this or that forex system theory. He began by heeding what all the experienced traders had to say on the topic. And more than any other slogan that came out of their mouths was the phrase "price action." John was so shocked at himself that he could have kicked himself. "It was so obvious, I couldn't believe it."

When it comes to trading the foreign exchange market, John realized that the trader has to take a decision between one of two ways to examine the trade: either by using fundamental analysis or using technical analysis. Fundamental analysis takes into consideration all the psychological fundamentals that can influence a currency's tendency in the market. Things like the influence that the non-farm payroll numbers that are released once a month can have, or how raising or lowering interest rates can influence a given currency pair.

When it comes to using technical analysis, this type of trader thinks that opening up the indicator menu on their charting platform will somehow inform them which pair of currencies to trade based on how the indicators read. From John's point of view these traders seem to think that -- rather than understanding price movement -- paying attention to charts full with lagging indicators such as RSI, MACD, and stochastics will lead them to the right trade to make. After surviving years of losing trades following this same formula, John is convinced that following this path is a losing cause.

The one technical indicator that most failing present day traders don't make use of is price action. They're all waiting for all their other indicators to fall in line. For this kind of trader, the only substantial thing is what his static indicators are showing him, and price becomes secondary or even irrelevant. The only thing wrong with using lagging indicators like these is that they do not supply the trader a clear picture of what the market is truthfully doing during a given trading period.

When, for instance, you train yourself to begin contemplating price support and resistance levels, you are seeing actual statistics which are having an impact on the movement of the market. No lagging indicator is ever going to give you that kind of indication which will be supported for very long. You have to be able to see it directly from the market itself. This is what John is trying to hammer home in his forex trading program Trading in the Buff.

The name of his course references the shedding of indicator based strategies and returning to basic price action indicators. Put another way, trading in the buff, without using the theoretical indicator window dressing that many traders learn to base their trading habits on. The theories sound good, but they don't necessarily work.

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