Every Forex trader must consider using an economic calendar in his/her Forex trading.
The Forex Factory Economic Calendar (http://www.forexfactory.com) shows the release time of all important economic news in different countries, that play a significant role in world’s economy. The calendar indicates the exact time of each news release and its influence on the Forex market. ForexFactory economic calendar is a great indicator for a fundamental analysis and news trading strategy.
Since most of the events from this economic calendar have a significant impact on the movement of currency pairs, it is important to take into account the market reaction to the release of particular news.
If your Forex trading strategies don’t include the news trading and fundamental analysis, try to avoid trading during the time when the economic news are released. As they may cause sharp fluctuations in the market.
If you, on the other hand, prefer a scalping trading on the Forex news, then the Forex Factory calendar will be your great help. As being published in a real time the news usually cause a quickly reaction in the market and this is the time where traders take advantage of it and enter the market.
How to set up the Forex Factory Economic calendar?
For a start, you can adjust the calendar according to your local time. Once you set up the time on the Forex Factory calendar, your browser will remember the information, and the next time you visit the site your time preference will be already synchronized.
To configure your local time, click on the time display next to the date:
A new set up window will open:
On the bottom, you are requested to register on the site, but it is not necessarily as you will be able to fully use the Forex Factory calendar without a registration.
After specifying your time preferences, click the Save Changes button. After that your current time will appear on the top of the main window of the website – check it out! If time does not match, recheck the settings, you may have selected the wrong time zone, or must change the daylight saving time.
After you finish, click on the Calendar tab to return to the Forex calendar.
How to use the economic calendar Forex?
Once you enter the calendar page, it is opened for the whole week by default. If you wish to track only the current day, select the appropriate date in the block on the left:
How Can you Know The Degree Of Influence Of The News On the Market
There is a color indicator placed next to each news or event. Below is an explanation:
Red – the news has a strong impact on the market High Impact
Orange – medium impact
Yellow – low impact
White – no impact, non-economic news
The color values of the news in the column Actual:
– Green – the data came out better than expected
– Red – the data came out worse than expected
– Black – the same as expected
The Forex Factory economic calendar is convenient because the news is published immediately after the release. At this time, the calendar displays the icon «Actual Pending», indicating the expectation of the publication of the actual value.
By clicking on this icon after the publication of news, you will see its value.