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Explaining the Economic Calendar
You know fundamental analysis is important in forex trading. You’ve also discovered how important economic events are, such as news releases. In fact, you’ve already seen the market go crazy around certain economic data releases, and you’ve realized it would be a great opportunity to make a nice profit.
However, to profit from economic news releases, you need to know what is happening and when. That’s where an economic calendar comes in. At first glance, these calendars seem pretty easy to interpret, but when you start digging in, you might find some things a little confusing.
On this page, we’ll explain exactly what an economic calendar is. You’ll also learn what the color-coding means, as well as what all those figures represent. More importantly, you’ll know how to interpret the data and how it might affect the market.
We’ve also provided you with access to an economic calendar that is always up to date and that features all the information you need to trade successfully.
Plus, all the top forex broker sites we recommend offer their own calendars, so make sure to sign up now. The sooner you start applying your new knowledge, the faster you’ll be able to make a profit from trading the news.
Video Transcription: Explaining the Economic Calendar
Hello again, this is topratedforexbrokers.com, and we continue our trading academy project with one of the most important things in fundamental analysis and in FX trading. This is the economic calendar. This is the reason why the Forex market moves. This is the Forex Factory which I have nothing to do with, it only represents a free way to look at the economic calendar.
(0.30) But as a matter of fact, you can simply google the economic calendar, and you will find out that it is offered by various other websites and by different forex brokers. All this information is freely available, so there’s nothing to hide.
(0.51) What I would like to do here is explain the concept and how to use it when it comes to forex trading, namely these specific areas.
(1.02) First of all, the date. You’ll see that today is Sept 29th,(note to voiceover – he circles the date on the left side) and these are the economic events for today. But if you click on this arrow, I won’t actually click it, but if you click on the arrow, you will go to the next day of sept 30th and then October the 1st, or you can choose to see all the economic events in the next week.
(1.23) We already know what these events will be. You can not be taken by surprise by these events. It could happen that you didn’t know, but that would only be due to you being un-prepared. So by the time that you select the date here, (note to voiceover – he circles the date) Friday, September the 29th. You can also select the time here (circles 1am)
(1.50) This is the US time, and this was the exact time that the economic news hit the wire. Then you have the currency from the currency dashboard. This is the currency that will be affected by the economic news.
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(2.06) For example. Look at the Japanese yen for this year. The housing starts and housing dealing, in general, is a very important economic release. If you don’t believe me then just remember what happened in 2008 with the financial crisis in the United States which started from the housing sector. Therefore it tells us a lot about the health of the housing market, of the construction sector and all the vertical and horizontal industries that develop in relation and so on.
(2.38) And so it gives traders an educated guess about the state of their economy. We also have German retail sales that will affect the Euro or the nationwide HPI, and this will affect the GBP and so on. If you do not know what the economic news means or how to interpret it, this is not a problem; you do not need to have a PhD in Economics or anything else.
(3.08) Simply click on the detail and find out more. For example. Nationwide HPI in the United Kingdom. What is this? This is the nationwide building society it measures the change in selling price in homes for Mortgages backed by Nationwide. The “usual effect” on the FX market and that currency being the great British pound.
(3.34) Now the “usual effect”. If the “actual” is greater than the “forecast”, this is good for the currency. Now let’s step back a bit. What does it mean by the ‘actual being better than the forecast’? Ahead of an economic event, you have these three columns.
(3.55) The actual, the forecast, and previous. This is the previous release. For example, the Nationwide HPI – M/M means it is released monthly. So in the previous month, the release was minus 0.1%.
(4.15) The forecast value is made by researchers, a pool of economists, or data companies that do research. They ask economists in various companies about the state of the business and they can then forecast a value.
(4.41) The forecast is 0.1%. So when compared with minus 0.1% one month ago. Today’s release was supposed to come in at 0.1% This is the old data (he highlights ‘-0.1%) this is the expectations (he highlights 0.1%) and this represents the “actual data”.
(5.05) If the “actual” is greater than the “forecast”, then this is good for a currency. What does this mean?
Step back and go to the video explaining the terminology in FX trading. Good for currency means Bullish. What does that mean? Bullish means we want to go long, and we want to buy GBP. Against what? A different currency that you may consider weaker.
(5.32) This is 0.2%, and the actual is a better outcome than the forecast. When you compare minus 0.1, 0.2, then is fairly good economic data for the GBP. The fundamental elements are sound for the higher GBP.
(5.54) Now if you go to the FX market today and you check the GBP’s reaction, you will see that it actually moved lower, not higher. You might think this is rubbish, but it is not. The economic calendar tells you in advance, the importance or the impact of specific economic news; There is a colour code here. (scrolls down the economic column)
(6.19) News in yellow like this nationwide HPI month over month, can be ignored. This is third-gear data. It doesn’t really matter.
(6.35) News in orange is far more important. ‘Final GDP’ in the UK, ‘Net Lending to individuals’ in the UK. The news in Red are the ones that truly move the market.
(6.53) And this is the reason that the GBP moved to the downside, because of the current account which performed terribly. In the previous month, it was minus 22.3 billion and then it was minus15.8 and then minus 23.2. And not to mention the final GDP and so on and all repercussions against it.
(7.22) But you have all the information on the economic calendar. Let me show you the Economic News. It’s supposed to happen at 11.00 am; see this green arrow.The FOMC (federal open market committee) member Harker, gives a speech. Why? The FOMC members vote the interest rates on world reserve currency. This interest rate is everything for the FX market.
(7.55) If you want to find out more details then you simply click the details tab and then you find out that this guy is due to speak about the economic outlook and financial technology at the Fintech conference hosted by the federal reserve bank of Philadelphia.
(8.14) “Audience questions expected” and you don’t know what will be asked, and you won’t know what the answers will be. It may move the market, or it may move the dollar. It is highlighted here with the orange colour which is fairly important, so it matters for the overall FX market.
(8.36) Then you will have the Chinese data, manufacturing PMI and non-manufacturing PMI. Manufacturing PMI is like the ISM manufacturing in the United States or the non-manufacturing ISM in the United States. The previous data is 51.7, and it is forecast to move to 51.5. And then, when the actual comes, we can trade.
(8.59) If the actual beats expectation, or if it doesn’t beat expectations. A very good question here would be. Who cares? Because we can not trade the Chinese Yuan. This is true. But China is the world’s biggest manufacturer, and demand from China for products, starting with Oil and ending with commodities and with everything you can imagine. That demand influences other major currencies that we can trade.
(9.35) An example is the Australian Dollar. Over 30% of Australian exports go to China. If China sneezes, the entire Australian economy will catch a cold. I can guarantee you that if this data, for example (hovers over 51.5), goes to 42 on Sunday when the markets close, then on Monday, you will see the Australian dollar moving low because traders will place their bets on expectations.
(10.07) To sum up, you will find out more details on the article that comes with this video. Concrete details regarding the most economic data. I wanted to better explain how to read the economic calendar and why the Red news is the one that matters.
Trading financial markets in general, and the Forex market in particular, is subject to paying attention to detail, both from a technical and a fundamental point of view. It is said that technical analysis shows the direction in which price is moving, while fundamental analysis shows the reason(s) the price is moving. These reasons are mostly economic events or news items that are known in advance, and therefore traders can adapt to their release, adjust portfolio, strategies, etc. The economic calendar is something that must be part of any trader’s toolkit, as it shows the potential outside factors that will influence the market. This calendar is available for free, and can be found with a simple Internet search. Most of the Forex brokers offer it on their websites as well, as there is no secret as to what economic news will be released and when.
Interpreting the News
The news that is making the economic calendar is known in advance and is repeated over and over again. Some of it is released monthly, and some on a quarterly or even yearly basis, and it refers to a specific economy. After all, trading the Forex market means buying or selling a currency pair, and the currency reflects the strengths or the weaknesses of an economy. At the end of the day, what a Forex trader is doing is comparing two economies (represented by the two currencies that form a currency pair) and making a trading decision based on the outcome of his/her analysis. As a rule of thumb, the stronger an economy is, the stronger the currency should be. This is an understatement though, as monetary policy is a bit more complicated than that. Speaking of monetary policy, all the economic news that is released, and can be seen on the economic calendar, is constantly watched and monitored by central banks before they set the tools that define the monetary policy. Based on this monitoring, interest rates are set.
Explaining the Calendar
The economic calendar looks like the picture below. This is the basic information that is offered by default when the calendar is accessed for the first time.
Obviously, the first column represents the date or the period under consideration. In the example above, this is a Tuesday, the 22nd of November. Moving forward on the right side of it, there is the time column. These are the exact moments of time during the trading day at which the news is released. Because of the high-frequency trading that governs the way markets are moving these days, the time the news is released is extremely accurate, by the second. In the picture above, the time is set based on North American input, but it can be changed to display any timezone. If you pick the news on the 08:30 column, the Core Retail Sales in Canada, it will be released at 08:30 in the morning, US Eastern Time. The next column shows the currency the news is referring to, and the currency that is most likely to be affected by the news. The currency, as stated earlier in this article, represents an economy, so the news refers to that specific economy. Using the same example from above, the Core Retail Sales in Canada will impact the Canadian Dollar (CAD), so traders who are interested in buying or selling a currency pair that has the CAD in it (like USD/CAD, or AUD/CAD, etc.) are aware that this news will impact the currency pair, and the market will move more aggressively than it did prior to the news being released.
Using the Colour Code
The economic calendar comes with a colour code that is valid for any source you’re using to display the news. This code comes in three colours:
- Yellow represents news that is not that important from a volatility point of view. This news is most likely not going to have a big impact on the way a currency is moving.
- Orange signifies second-tier news. This news might change quotations, depending on the actual values released when compared with the forecasted value.
- Red news is the news that matters. Markets will move aggressively on such releases, as trading algorithms will buy or sell a currency pair in the blink of an eye when these important events hit the wires.
The next column shows the name of the actual news that is released. Also on this column is indicated the period that the news takes into consideration, such as whether it is monthly news (m/m), or quarterly (q/q), etc.
The Detail column is extremely important. By clicking the box that appears in that column, a new window will open with a description of the news. This description will briefly state what the news is about, how a currency should react based on it, and other relevant data.
Following the Detail column, there are three others that highlight the following sets of data: actual, forecast, and previous. As the name suggests, actual refers to the actual value of the data that is released. The previous one is the data that was released last time, so if the news is released monthly, that column will show the last month’s data. The forecasted value is based on an estimate that is deducted from a poll. Economists are interviewed and asked to state the forecast for that data based on various factors, and the average is posted in that column. The actual data refers to the value that is about to be released. It goes without saying that the market will react strongly when the actual data differs from the forecasted data. The bigger the difference between the two, the more powerful the move the market will make.
Back to the Detail column: By clicking that small box, traders have access to historical data as well. This set of data can be compiled in a chart, or used in multiple other ways to form an idea about past trends. In this way, the data can tell much about the way the economy is moving, and is a valuable source of information for the Forex trader. Using the same example as before, let’s put all the information stated here in one statement:
On Tuesday, the 22nd of November, at 08:30 am ET, the monthly Core Retail Sales in Canada will be released. Prior data was 0.0%, and it is forecasted to come at 0.6%. If the actual beats expectations, the CAD will catch a bid against other currencies, while if the actual misses, then the CAD’s reaction should be a dovish one. This is how the economic calendar should be interpreted, and the same approach is valid for every news release.
Why Using an Economic Calendar When Day Trading Is Important
As a trader, the economic calendar is one of your best friends. You will only spend one minute with it a day (or less), but that one minute—every day—is crucial if you want to become a consistently profitable day trader.
Defining an Economic Calendar
An economic calendar shows the scheduled news events or data releases related to the economy and financial markets. New GDP growth rate figures, the latest non-farm payroll numbers, and interest rate decisions—these are all examples of what you may find on an economic calendar.
There are loads of these economic data releases—at least once a week on average, and sometimes every day during particularly busy weeks. These events are listed on the economic calendar, along with the scheduled time of the release.
Each event is graded, and those grades depend on which economic calendar website you use. Minor events that are expected to have a minimal market impact are either marked as “Low” (as in, “low impact”) or they may lack any special markings. Events that may have a market impact are marked as “Medium,” and they usually have a yellow dot or yellow star beside the event. Yellow indicates some caution is warranted at this time. Red stars, red dots, or “High” markings indicate a significant news/data release that is highly likely to move the market in a significant way.
Risk Caused by High-Impact Data/News Releases
As a day trader, or even as a swing trader, the events marked red are the ones you need to be aware of. Volatility around the event is typical and expected, regardless of whether the data comes out above, below, or right in line with market expectations.
Traders know these events cause volatility, and they may decide to sit out while the markets swing by canceling their pending orders. Those canceled orders cause a drop in liquidity right before a market-moving event occurs. Since there are fewer orders to absorb market buy or sell orders (or stop-loss orders) that are triggered by the event, the price will often “whipsaw” quickly back and forth before choosing a more sustained direction.
Reducing Your Risk with the Economic Calendar
Check your economic calendar each morning before you start trading, and jot down the times of the major data releases.
Under normal market conditions, you should know what your risk is on every single trade. The risk on each trade—defined as the difference between your entry price and stop-loss price, multiplied by the position size—should be less than 2% of account equity, and ideally 1% or less.
Typically, your stop-loss order will get you out of the trade at the price you expect, so long as you are trading a stock (or other markets) with a tight bid/ask spread and significant liquidity (enough shares or contracts) at each price level to absorb your orders. However, when high-impact data is released, things can drastically change. You face a high chance of slippage (a worse-than-expected price on an order). What was supposed to be only a 1% risk trade could end up resulting in a 5% loss, for example.
You can’t know exactly what data will be revealed, or exactly how many orders will come into the market upon its release in a reduced-liquidity environment. Because of this unpredictability, professional day traders typically close out their forex, stock, or futures positions three-to-five minutes before the high-impact data’s release. They also avoid taking new trades until after the data has been released. Since that moment of increased risk is scheduled, it can be easily avoided, and it’s usually best to do so.
If you day trade options, you can hold your positions through a major data (or earnings) release. Many options strategies are designed for trading these types of specific events. Options are a bit different than other markets, though. Once you buy an option (paying the premium) your risk is capped—the premium you paid is the potential loss. When you buy an option or close out the trade, you may get slippage, but you can’t lose more than the premium you paid.
What Is the Economic Calendar and What Is it For?
There are 2 ways to analyze forex: technical analysis – forecasting the trend direction based on indicators and historical data and fundamental analysis which is based on statistical data, news, events.
Economic calendar is one of the most effective tools for analyzing the market, which is actively used by traders. It is a kind of news summary indicating the time of their release and the impact on particular currency. The calendar consists of all the significant upcoming events based on which the trader can foresee the possible behavior of the price.
Many factors affect the Forex market – economic reports, speeches, central banks meetings. They vary in degree of importance and are divided into three categories: low, medium and high. The more significant the event is, the more volatility can be expected after publication. This should be taken into account in forex trading.
Economic and political events increase market volatility, the price may rise or fall significantly. Some traders choose trading at the time of the news release, while others try to avoid it. Traders who prefer news trading open orders during the publication of important macroeconomic statistics and make profit from the increasing volatility and trend impulses.
The economic calendar is available on thematic and analytical resources and websites of forex brokers, including the official JustForex website.
How to use economic calendar
It is worthwhile to get acquainted with the structure of the economic calendar in more detail. The calendar is presented in a table with columns and rows. Let’s look at the economic calendar from JustForex and examine the structure:
- Date – the time when the publication of the relevant news is planned.
- Time left – the time before the event. If there is the “Done” mark, the event has already passed.
- Event – the name of event. If you want to see the detailed information, left click on the event.
- Impact – degree of influence, displays how the particular news affects the currency. There are three degrees – Low, Medium and High. As a rule, High means that after the announcement of that news, a sharp rise or fall is expected.
- Previous – the previous value.
- Consensus – the forecasted value.
- Actual – the current value. If the line is highlighted with green, the result turned to be better than expected, red – worse than expected, and gray – the forecast was correct.
- Timezone – here you can choose the time zone. It is important to consider the difference in time zones.
What news is worth paying attention to?
News marked with Medium and High can greatly affect the price movement. Such news can cause a sharp rise in the exchange rate or make it fall.
The following news influence the market the most:
- change in key interest rates;
- employment and unemployment changes;
- inflation data;
- economic growth of the country;
- indexes of business activity in various sectors of the economy.
Trading on the news, a trader can get a high profit. For example, Nonfarm Payrolls is very important US economic indicator, the dollar reacts to it particularly strongly. It displays the change in the number of people employed in the nonfarm sector. The publication of Nonfarm Payrolls is considered to be an indicator that makes the market move. After its publication, the response of the forex market is usually very powerful.
Important statistics cause significant impulses and increase volatility. So, it is very important to monitor the news in advance in order to know the time of publication and what trading instruments it will affect.
How To Understand An Economic Calendar
Currency prices don’t just move – they are MOVED. This is a fact from which you can take full advantage of when you learn how to read and understand an economic calendar.
Literally, the best question you can ever ask yourself before even looking at your charts is: “What’s on the economic calendar this week?”
Fundamental Analysis shows you the core reasons why currency prices move. So it’s also a fact that you can always be one step ahead, primed and ready to take full advantage of the market BEFORE it moves.
Now, don’t worry — we’re not going to throw some overwhelming discourse into macroeconomics at you! That would be disrespectful.
At Forex Source we break it down really simply for you and show you HOW to trade fundamental analysis. If you’re new to the concept of news-based trading, then you’re in a for a pretty exciting journey! Trading the news is fast-paced, often volatile, extremely profitable … and one heck of an exhilarating ride!
Pretty exciting stuff, eh?! Day trading the news has got to be one of the most exciting jobs out there, and literally why I love getting up in the mornings!
The great thing is that there is a multitude of economic data releases to trade each week.
Here is a summary of what we’ll be looking at in this article:
- Why keeping track of economic indicators is important?
- What is an economic calendar?
- How to see when economic events take place
- How to know which economic events are important
- Evaluating what markets are expecting from economic events
- Putting it all together
Why Keeping Track Of Economic Indicators Is Important?
Beginners often question whether tracking data points is necessary. The short answer to this is ‘yes’.
It is necessary if you want to know what will move the forex market next and why.
Economic indicators are the catalysts for market movement. This, of course, enables you to trade on the right side of the market confidently. And more often than not, straight into profit, too, with zero drawdown.
This is also irrespective of whether you trade with technical analysis or not. You still need to be focused upon that which ‘moves’ the markets in real time.
Central Banks are the most important institutions in the financial markets. And you can rest assured that Central Banks keep a keen track of economic indicators at all times. A Central Bank will not once take their eye off this ball. Economic indicators are that important.
Professional institutional traders know well the impact that economic indicators can have on a Central Bank’s monetary policy and how these can directly affect currency values.
Keeping track of economic indicators is an essential part in any (successful) trading process. You can keep an eye on upcoming economic indicators by way of a forex economic calendar.
What Is An Economic Calendar?
Also known as an FX Calendar, this is simply a date ordered list of economic data points released by independent and government agencies. According to Wikipedia , an FX calendar is used to “monitor market-moving events”. For example, some of these agencies would be:
- Bureau of Labor Statistics (releases economic data for the US)
- Office for National Statistics (releases economic data for the UK)
- Eurostat (releases economic data for the EU)
- IHS Markit (releases PMI data for various countries around the world)
These are only but a few of the many agencies that release economic data. But with so many countries and indicators, how can traders keep track of them all?
This is a good question and it’s a common stumbling block.
The good news is that we have a huge and helpful free resource for you: Forex Source Knowledge Base Videos . These videos are the best way to learn how to trade the news. Bookmark and refer to these videos regularly and you will quickly get up to speed on the best economic indicators to focus on and how to trade after a news release.
Alternatively, you can also register for the Forex Source Terminal , and we’ll do all of the research for you. The result is pure, effortless forex trading every single day!
Below is an example of a free calendar by Forex Factory:
How To Know When Economic Events Will Take Place
The main purpose of a calendar is to be able to plan ahead.
Fortunately, we don’t need to remember when all the events are due. The calendar provides us with that important info.
We can simply look a day or week ahead and see which events are scheduled.
– As an illustration, we can look at the example below:
The calendar shows us the dates as well as the time of the various releases.
This helps us in two important ways:
- To be able to see the events in advance allows us to plan future trades.
- And to see the events in advance to helps us to manage existing trades.
This can help us to reduce risk on open positions. We can take profits and reduce risk if data is forecast to come out against our trades.
In the same way, it can also help us to stay in winning trades. A vital consideration is the time zone which is used by different economic calendars.
Some calendars automatically detect your local time. Thus, the times displayed for the risk events are in your local time.
Some calendars require you to set your time zone manually. Make sure to double check this on the calendar you decide to use.
How To Know What Economic Events Will Take Place
The next step in the calendar is knowing what events are due. The majority of calendars will give a short description of the event.
The examples below illustrate how different calendars display the same event.
- – Below is an example from the Forex Factory calendar. The event displayed is US CPI:
Do you notice that the Xenith calendar offers more data points?
The two free calendars only had the month over month numbers. This is one of the clear advantages of having a subscription-based calendar. They are also quicker to release the data.
How To Know What The Different Indicators Mean
But what about beginners who don’t know what the indicators mean. For those who are new to trading, all the various indicators can be rather daunting.
Luckily, some calendars have that covered as well. Some of the calendars also provide detailed descriptions of the indicators.
This is a very helpful tool. Especially for beginner traders who are still learning. Let’s see what some of these detailed descriptions look like.
For this example, we have used US CPI as an example once more.
- – Below is an example of a detailed description on the Forex Factory Calendar:
Below is an example from the Metastock Xenith Calendar . This subscription-based calendar provides more info compared to the other two versions.
The detail sections will usually provide the following helpful info:
- – The agency or source that is providing the data
- – It explains what the indicator is measuring
- – Usually, it also shows what type of impact the release has on the currency
- – Some calendars provide the past historic data for the indicator
- – It also shows when the next release is due
- – Some will also provide a chart of the indicator as well.
As you will have noted, there is more USEFUL AND TRADEABLE information provided in the paid subscription Xenith calendar.
Make sure to look at this attribute when choosing a calendar for yourself.
How To Know Which Economic Events Are Important
There can be anything from 400 and 800 economic data points released every month. Furthermore, that is only for the G7 currencies.
There can be roughly anywhere between 100 and 200 scheduled data points every week.
Are all the events and indicators important for trading? The answer is ‘no’. Not every event on an economic calendar will be market-moving either.
Usually, calendars will have a section that shows an indicator’s volatility.
In other words, what the likely impact of the event will have on the markets. This is an essential part of the calendar.
This is especially useful for beginners as it highlights which events are the most important. This comes with a caveat:
Let’s have a look at a few examples of how calendars display this information.
The forex factory calendar below displays the impact in colours. Red is high impact; orange is medium impact; and yellow is low impact.
Below is an example from the Metastock Xenith calendar . It displays the impact in bars.
And here comes that caveat: Impact ratings can vary across calendars.
Some calendars are not always accurate with impact ratios. A good example of this would be Euro Zone PMI releases.
According to the Forex Factory calendar , these events have a medium impact.
This can be seen in the example below.
However, the Babypips calendar below rates this event as a high-impact release.
Which one do you trust?
PMI indicators are essential leading indicators and can really move the markets. Over time this is something that you will learn and just know. As you will with all important economic indicators; and Forex Source will help you with that.
The example below is a good illustration of this.
In both these examples, the EUR PMI data had big reactions. In fact, the price dropped almost 100 pips after each release.
From this example, it’s clear that PMI data should be rated as a high-impact release. Don’t always trust the impact ratings on their own.
How To Know What Markets Are Expecting From Economic Events
Markets don’t always react to high and low-impact news in the same way. The reason for this has to do with expectations.
Markets usually price in data points based on the forecasted outcome. As a result, what traders expect to happen is just as important as the event itself.
If economic data releases come out as expected the response can be muted. In contrast, big deviations between expectations and actual numbers can be market moving.
So, how can we see what markets are expecting from data releases?
The majority of the calendars will provide the following information:
- What the previous release of the item was
- The market forecast for the upcoming release
- The actual data release number
Let’s look at a few examples below. The first example is the Forex Factory expectations section:
Below is the example of the same expectations section on the Babypips calendar.
As mentioned before, the subscription-based calendars often provide more information. For instance, the Metastock Xenith example below is a good example of this.
The minimum and maximum numbers are very important. They let us know when an event has deviated significantly from market expectations .
Above is an example how the Metastock calendar points out big deviations. Did you notice the lighting symbol next to some of the releases? This is market moving information!
They show when actual numbers came in below the minimum or above the maximum forecasts. These can provide fantastic trading opportunities.
This is one element that sets the MetaStock Xenith Calendar apart from the rest.
Having access to this type of real-time info can really help traders to gain an edge in the markets.
Putting It All Together
1. Find an economic calendar you’re comfortable with
Make sure to select one that has the features we mentioned above. Look for ones that offer more details.
2. Use the calendar to plan ahead
Don’t get blindsided by economic events. Make sure to plan your trading days with the help of the calendar and your Free Forex Source Daily/Weekly Outlook Videos
3. Evaluate how markets react to news events to sharpen your skills
Practice your fundamental skills by analyzing how markets react to news events. A little bit of research will tell you what traders are expecting from data releases.
The important questions to answer are:
- Why is the event important?
- What are market participants expecting from it?
- How are traders likely to trade the event based on bit beats or misses?
Then, see how the actual event differs from the market’s forecasts. This will be a great way to sharpen your skills.
You may be thinking: Is there any forex news trading software available? Is there anything to make the whole process much easier?
The answer is ‘yes’. We know fundamental analysis inside out. And we can tell you: the best thing that has been developed yet is the Forex Source Terminal . This is your best shortcut to analysis and a comprehensive, workable news trading strategy. All of the research is done for you!
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