The Benefits Of Using A Forex CalendarAnd Exactly How It Can Make You Much More Successful
As a great currency exchange trader, a Forex calendar ought to be a crucial part of your daily trading routine. Even as a technical analysis trader, as most Forex traders are, you can't disregard the economic news. The fact is, looking for the upcoming scheduled news on a Forex calendar should always be first thing you do prior to choosing entering a trade. Being aware of the time of high impact news before it occurs permits you to minimize your risk. During these volatile market conditions, you might want to stick to the sideline or make the most of them utilizing fundamental analysis trading methods. Trading Forex from the perspective of fundamental analysis isn't a popular option, but if you combine it with your technical analysis, you may have a huge benefit in the Forex market. Fundamental analysis
generally considers the economic and political changes in the Forex market. It can also give you a better understanding about important monetary reports and indicators. Unemployment rates, interest rates, PMIs, and gross domestic products are only a few of the most important economic indicators in the foreign currency market. Once you understand how these reports can affect a particular currency, you can create a trading strategy to leverage the volatility in the market. One of the popular ways to trade the news would be to trade the initial spike that follows a high impact news report; especially if the actual release number differs significantly from the estimate number.
For example, if we're expecting the US Non- Farm payroll news to be released at a forecast of 300K. If the actual release number comes out much better than expected at 370K and above, we would jump in on a trade to buy the US dollar against other currency pairs. But, if the actual release number comes out worse than anticipated at 230K and below, we will enter into a trade to sell the US dollar. In this example, you will see that we are looking for a 70K of deviation. According to historical data from prior NFP releases, this is actually the minimum difference required for the market to move 50 pips or more for at least 75 percent of the time.
There are many well- recognised Forex websites and blogs offering free economic calendars that are updated with the latest economic news and figures as soon they are announced. One excellent source for Forex fundamental analysis is CurrencyNewsTrading. com that offers a fantastic Forex calendar that displays the scheduled news events in a weekly basis. Most online Forex calendars color- code each news event by its potential impact, yet the CNT’s Forex calendar displays only high impact news that historically are the most tradable. Furthermore, it indicates the tradable deviation for each event, combined with possible pips movement range, associated market headlines, and also the different currency charts showing the market movement as a result of each particular news report.
By following a Forex calendar, you'll know in advance the time of news reports that will probably impact a particular currency, and it should be a necessary tool in your daily trading so that you can manage your risk. You can even make use of the market volatility soon after these news reports by applying fundamental analysis strategies. To start, go to CurrencyNewsTrading. com to find out about news trading and to obtain the latest tools to help you to make much better decisions in your Forex currency trading and therefore make you much more successful.