Forex Calendar

What is an economic calendar?

An economic calendar is a list of upcoming events that could impact the markets. This calendar can provide you with information about events such as interest rate decisions, non-farm payroll reports, and inflation data releases. By having this information, you can make informed decisions about your trades. It shows past, present, and future events.

The economic calendar can be seen as a tool that shows you events that could move the markets. These events are typically economic data releases or central bank decisions. The calendar will show you when these events are scheduled to take place and what the expected outcome is. This information can help you make informed decisions about your trades.

5 Reasons For Using a Forex Calendar

Now that you know what an economic calendar is, let’s discuss the reasons for why you should use one.

1. Knowing When central bank decisions are made

One of the reasons to use an economic calendar is to know when central bank decisions are made. By knowing this information, you can be prepared for any potential market moves. For example, if the Federal Reserve is expected to raise interest rates, you may want to consider closing any open positions or reducing your exposure to the markets. In addition, you may also want to avoid placing any new trades prior to the announcement.

2. Tracking Economic Data Releases

Another reason to use an economic calendar is to know when economic data is released. This data can have a big impact on the markets. The reason for this is that the data can give you insight into the health of the economy. If the data shows that the economy is doing well, you may want to consider taking a long position in the markets. However, if the data shows that the economy is struggling, you may want to take a more cautious approach.

3. For Fundamental Analysis

One of the reasons to use an economic calendar is for fundamental analysis. Fundamental analysis is the process of analyzing the underlying factors that can impact the markets. This type of analysis can be used to identify long-term trends in the markets. By using an economic calendar, you can keep track of key data releases and events that could impact the markets.

4 Risk Management

Another reason to use an economic calendar is for risk management. By having this information, you can know when to take a more cautious approach with your trades. For example, if there is a high-impact event scheduled, you may want to consider reducing your exposure to the markets. In addition, you may also want to place stop-loss orders to limit your losses in the event of a market move.

5. Improve Your Trading Results

Last, but not least, another reason to use an economic calendar is to improve your trading results. By having this information, you can make informed decisions about your trades. This is because you will know when to enter and exit the markets. Additionally, you can also use the information to place stop-loss orders and take-profit orders.

How To Trade With a Forex Calendar

Now that you know the reasons for why you should use an economic calendar, let’s discuss how you can trade with one.

Using an economic calendar is relatively simple. First, you need to find a reputable source for the calendar. There are many websites that offer this type of information. Once you have found a reputable source, you can then start tracking the events that are scheduled. While choosing which events to track can be difficult, you should focus on the events that are most likely to impact the markets.

Once you have chosen which events to track, you need to decide how you want to trade them. There are two common approaches for trading economic news releases. The first approach is to trade the release itself. This means that you will enter a trade when the release is scheduled and then exit the trade after the release has occurred. The second approach is to wait for the market to react to the release. This means that you will enter a trade after the market has moved in response to the news.

No matter which approach you choose, it is important to have a plan in place before the release occurs. This plan should include your entry and exit points, as well as your stop-loss and take-profit orders. By having a plan, you can minimize your risk and maximize your chances for success.

What Events Are Included In The Economic Calendar?

Now that you know the reasons for why you should use an economic calendar, let’s discuss what types of events are included in the calendar.

The economic calendar includes a variety of different events. Some of these events are more important than others but they are generally grouped into 3;

1 Low impact events

2 Medium impact events

3 High impact events

Low-impact events are those that are not expected to have a significant impact on the markets. These types of events generally include small releases or announcements.

Medium-impact events are those that are expected to have a moderate impact on the markets. These types of events can include releases that are of medium importance or releases that are not expected to move the markets significantly.

High-impact events are those that are expected to have a significant impact on the markets. These types of events can include major releases or announcements.

How To Use The Economic Calendar To Make Informed Trading Decisions?

Now that you know the reasons for why you should use an economic calendar and what types of events are included in the calendar, let’s discuss how you can use the information to make informed trading decisions. There are 5 steps that you can take;

1. Determine which releases are most important to your trading strategy.

Truth is, not every release will be important to your trading strategy. This is why it is important to determine which releases are most important. To do this, you need to understand what your trading strategy is and what impact the releases will have on the markets.

This is important because it will help you to focus on the releases that are most important to your trading strategy. By only focusing on the releases that are most important, you can minimize your risk and maximize your chances for success.

2. Note when the releases are scheduled

Once you have determined which releases are most important, you need to determine when they are scheduled. This information is readily available on the economic calendar and it will help you to know when to enter and exit the markets. Additionally, it will also help you to place stop-loss orders and take-profit orders.

3. Decide how you want to trade the release

After you have determined which releases are most important and when they are scheduled, you need to decide how you want to trade the release. If you are a conservative trader, you may want to wait for the market to react to the release. If you are a more aggressive trader, you may want to trade the release itself.

4. Place your orders

After you have decided how you want to trade the release, you need to place your orders. This includes your entry order, your stop-loss order and your take-profit order. By having these orders in place, you can minimize your risk and maximize your chances for success.

5. Monitor the markets

After you have placed your orders, it is important to monitor the markets. This will help you to see how the market is reacting to the news release and it will also help you to adjust your orders if necessary.

Forex Factory Economic Calendar

The Forex Factory economic calendar is a great tool for traders. This is because it includes a variety of different features that can be useful for traders. These features include;

1. Events Filter

While using the Forex Factory economic calendar, traders have the ability to filter events. This means that they can choose to only see the events that are most important to their trading strategy. By doing this, traders can save time and focus on the information that is most important to them.

2. Comprehensive Data

Another great feature of the Forex Factory economic calendar is the ability to see previous releases. This can be useful for traders because it can help them to see how the market has reacted to certain news releases in the past. Additionally, it can also help traders to identify patterns.

3. The ability to set alerts

The Forex Factory economic calendar also allows traders to set alerts. This means that traders can be notified when a certain release is scheduled. By doing this, they can be prepared for the release and they can also place their orders in advance.

4. User-Friendly Design

The Forex Factory economic calendar is designed to be user-friendly. This means that it is easy to navigate and it is also easy to understand. Additionally, the calendar is available in a variety of different languages, which can be beneficial for traders who are not native English speakers.

Types of News Events in an economic calendar

There are a variety of different types of news events that can be found in an economic calendar. These include;

1. Interest Rate Decisions

One type of news event that can be found in an economic calendar is an interest rate decision. This is when a central bank announces whether or not they are going to change the interest rate. This can have a big impact on the markets and it is important for traders to be aware of these announcements.

2. GDP Releases

Another type of news event that can be found in an economic calendar is a GDP release. This is when a country releases their gross domestic product figures. These figures can have a big impact on the markets and they can be used to predict future economic conditions.

3. Unemployment Releases

Another type of news event that can be found in an economic calendar is an unemployment release. This is when a country releases their unemployment figures. A high unemployment rate can be bad for a currency, while a low unemployment rate can be good for a currency.

4. Inflation Releases

Another type of news event that can be found in an economic calendar is an inflation release. This is when a country releases their inflation figures. The figure is usually given as a percentage and it can be used to predict future economic conditions.

5. Manufacturing Releases

Another type of news event that can be found in an economic calendar is a manufacturing release. This is when a country releases their manufacturing figures. These figures can be used to predict future economic conditions.

Tips for traders using the economic calendar

There are a few tips that traders should keep in mind when using the economic calendar. These include;

1. Use the proper time zone

When using the economic calendar, it is important to use the proper time zone. This is because different countries release their data at different times. For example, data from the United States is released at 8:30 AM EST, while data from the United Kingdom is released at 8:30 AM GMT.

2. Be aware of holidays

Another thing to keep in mind when using the economic calendar is to be aware of holidays. This is because some countries do not release data on holidays. For example, the United States does not release data on Thanksgiving or Christmas.

3. Check for updates

When using the economic calendar, it is also important to check for updates. This is because the data can sometimes be revised after it is first released. By checking for updates, traders can be sure that they are using the most up-to-date information.

4. Use multiple calendars

When using the economic calendar, it is also a good idea to use multiple calendars. This is because different calendars can provide different information. By using multiple calendars, traders can get a more complete picture of the market.

5. Stay disciplined

Finally, it is important to stay disciplined when using the economic calendar. This means that traders should not blindly trade based on the data that is released. Instead, they should carefully consider the data and make sure that it fits with their trading strategy.

Read more:

• Beginner’s Guide To Forex Trading