The question posed in the title of this article should really be flipped and asked: Has John Templeton’s formula (using price action to determine successful foreign exchange trading) been consistently failing? And the answer is no. Not in all the years since then Was markets to trade. In fact, this is what many, if not most, successful professional forex traders use as their primary reference point for finding successful trading opportunities.
According to John, if you are looking for a trading robot (also known as “advisors” or advisors) to help you trade the forex market, you are wrong about finding profitable trades. “The trading markets are too complex to let the robot trade for you.” There are too many variables that any reputable forex trader can use to allow a robot to trade for him. Also, it doesn’t make any sense, at least with the data that most of these robots are programmed to collect and decrypt. In other words, the data they view and decrypt is not always valid data.
But what about those who trade using “special indicators”? Special indicators are interesting in theory; and they are certainly an interesting argument for those who sell forex trading strategies based on the use of these indicators. However, they only tell you that already happened. They show a trend already halfway through the life cycle. But they are definitely unable to predict which direction the market will take over the long term. And by the time you enter a trade using these indicators, you are already losing half of the profits you power made. So what’s good about that!
Let’s consider such an indicator as a stochastic. According to the so-called “experts”, this indicator is designed to show you when the market is oversold or overbought. But how does this apply to the forex market, where you buy one currency over another, rather than product-focused stocks competing with similar product-focused stocks? As John asks, “Because this indicator tells you that a currency is overbought or oversold, does that mean it’s time to buy or sell?” The foreign exchange market is different from traditional commodity or product-oriented stock investments.
John considers himself a technical trader focused on price movement, which is why he condemns all these useless theorems about investing in the foreign exchange market. “Once traders can get rid of this type of thinking and start focusing on what is important to a technical trader, which is price movement, then you can start calling yourself a trader.” Finding trades with potential profit based on price movement or price movement is John’s training material. Buff trading teaches.
And he doesn’t just advertise his trading product on Forex; he says from his own experience: “When I first started trading forex, I had to take my own shots, like everyone else. I bought one gadget after another. And after all this, it became obvious to me. work for me. I can’t push a button and become a millionaire. “
Instead, he squatted down and began studying the only forex trading signals he needed to alert him to what currency pairs to invest in: price movement. The currency you invest in depends on market conditions that are constantly changing. Market conditions will change depending on whether it is a range market or a trending market. But you have to be able to look at pure statistics and know what you are looking at in order to be able to tell what is happening at the moment.
Trendy forex trading systems will come and go like any other trading fad. However, if you really want to make money trading the foreign exchange market, you better pay attention to the basics. This means observing price action and the fundamentals that drive price action. This is where the data needs to be taken action.