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A Candid Evaluation 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 originator of the Trading in the Buff forex signal system, soon learned that all the challenging ways that traders use to pick a winning forex trade were only muddying the field for him. "I was basically just an inanimate object waiting for arbitrary lines to cross, informing me that I should open or close a trade. Then it dawned on me. How in the world could I make a profit trading currency exchange, if I don't even understand what I am looking at?"

This is when John determined to take the bull by the horns and to reason things out for himself. No more buying into this or that forex coaching theory. He proceeded by absorbing what all the veteran traders had to say on the topic. And more than any other expression that came out of their mouths was the phrase "price action." John was so aghast 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 came to see that the trader has to take a decision between one of two ways to evaluate the trade: either by using fundamental analysis or using technical analysis. Fundamental analysis takes into consideration all the psychological fundamentals that can bear upon a currency's tendency in the market. Things like the impact that the non-farm payroll numbers which are released once a month can influence the market, or how raising or lowering interest rates can impact a given currency pair.

When it comes to using technical analysis, this kind of trader surmises that opening up the indicator menu on their charting platform will in some way convey to them which currency pairs to trade based on how the indicators read. From John's point of view these traders seem to think that -- rather than comprehending price movement -- adhering to charts full with lagging indicators such as RSI, MACD, and stochastics will steer them to the right trade to make. After enduring 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 modern 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 the same as 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 example, you discipline yourself to begin considering price support and resistance levels, you are being shown actual statistics which are having an impact on the flow of the market. No lagging indicator will ever give you that kind of information 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 endeavoring to hammer home in his currency trading program Trading in the Buff.

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