The Forex market is a continuous event that changes as a result of accurate information. The Forex Factory calendar is one of the tools that traders may use to time the market and make wise decisions. A Forex calendar is a crucial tool for traders who wish to be informed about events that affect the world economy and the state of the market. We will be explaining how to read the Forex factory calendar to make good trading decision in this article.
Forex Factory Calendar
Forex factory calendar is an essential tool that keeps traders up to date on recent news, economic events, and other crucial aspects of the Forex market. It is a free online tool that traders use all over the world to keep up with market-moving events.
How To Read Forex Factory Calendar
The Forex calendar comprises different sections, such as, date and time, currency, event, impact, forecast, actual figures, previous value etc.
1. Date And Time
The Forex Factory Calendar shows the date and time in your local time zone in its date and time section. Choosing your date and time zone is the first step in utilizing the Forex Factory calendar. You may choose to display events from the previous day, week, or month.
Setting your date helps you plan your trades and keep track of events that could have an immediate influence on the market, while adjusting your time zone lets you stay informed about economic events and news updates that happen at various times throughout the world.
This provides a brief overview of the event and its potential impact on the market. The event section shows the name of the economical indicator or news releases. One example of an event name is the US Non-Farm Payroll report, which will be listed as NFP.
Under the event section, we have other event details;
- Actual value: This section shows the actual outcome of the event. This is the most important section because it tells you the result of the event, whether the outcome was better or worse. It also helps to assess the event’s impact on the market.
- Previous value: The previous value represents the indicator’s value in the previous period. It helps traders gauge the historical performance of the indicator.
- Forecasted value: The forecasted value is an economist’s prediction of the indicator’s value for the current time. It gives traders an idea of what to expect befrore the event.
The currency that has been impacted by the market event is displayed in the currency section of the Forex Factory calendar. For instance, if the market event is connected to the US economy, USD will be the exchanged currency. You can concentrate on the currencies you’re actively trading with the aid of the currency section.
This section demonstrates how the event has affected the financial markets overall. Impact levels are assigned, ranging from “low” to “high.” High-impact events should be carefully considered by traders because they are likely to have a big impact on the market.
How To Use The Forex Factory Calendar
You can use the Forex factory calendar to make good trading decisions by:
1. Staying Updated
The Forex Factory Calendar is a crucial tool that you may use to keep track of market news and happenings. Through the Forex factory calendar, you may correspondingly foresee future market reactions and modify your trading approach.
2. Planning A Trade
You can develop a good trading plan once you have identified an upcoming event. Combine the information from the calendar with your technical analysis to make more informed decisions. For instance, you might want to close your positions before to a high-impact event if it coincides with a significant support or resistance level because it could signify a potential breakout.
3. Managing Your Risk
With the insights gained from the Forex Factory calendar, you can figure out your risk management strategy. You can manage risk by identifying when the market-moving events are likely to take place.
In the fast-paced world of Forex trading, staying informed is paramount. The Forex Factory calendar is a valuable tool that empowers traders who wants to be updated with economic events and indicators that affects the foreign exchange market. By understanding how to read and utilize this calendar effectively, you can enhance your trading decisions and increase your chances of success.