Economic Calendar Forex (Use our fx Economic Calendar!) is a tool used broadly for fundamental analysis. Central banks and financial institutions are posting all the changes in one’s economy.
You can find it on investment websites or brokers with a slightly different format but the same source stream.
How to Use a Forex Economic Calendar and what Events Matter
You can use the Forex economic calendar on any device, from smartphones to tablets and laptops/PCs.
But a couple of settings can be used to your advantage when following events in terms of importance. This way, you will make the fx calendar your own.
And you will focus all your attention on those events that matter without wasting any time or brain matter on the restless critical activities.
Under the investing economic calendar, news marked from one to three “bullheads” depending on importance.
It is quite self-explanatory, following common logic, three bullheads mark a significant event with significant volatility.
The two bulls it’s a piece of medium importance news where some instability will occur. Last but not least, one bullhead marks a bit of less important news where volatility is low or nonexistent.
What Events to Follow as a Beginner or Experienced Trader in the Forex Economic Calendar?
Starting with monetary policy or fiscal policy, central banks are publishing numbers in regards to the economy’s performance.
Similarly, the importance of events on the Forex economic calendar marked by three bullheads can mean volatility either way.
For a better understanding and distinction between the two, there is a way to interpret the trend direction.
In respect to the volatility while the event is happening, you will find three categories on every release:
- Previous release
- Forecast (what to expect)
- Actual (the exact number)
These are the terms used in the fx economic calendar for identifying the data. On many occasions, the "forecast" of the event will not coincide with the data from "actual."
So, allow me to explain how to speculate a trend depending on the economic calendar forex releases.
Forex Economic Calendar, Fundamental Analysis, and Speculations
Understanding why the markets are moving and how they better react to speculation is sometimes much better and useful than technical analysis. There is no mystery behind it.
Traders need to understand both methods of analysis. Still, for the past four years, trading has become a more fundamental analysis.
Previously a balance existed between the two and as traders liked to put it:
The markets are:
- 30% fundamental
- 30% technical
- And 40% of traders’ psychology.
Let’s agree to disagree!
Nowadays, that’s a dramatic understatement, markets have become 80% fundamental. Let’s assume we find a three bull event on the economic calendar Forex.
The previous data of that event, in particular, is 300 million and the forecast is 305 million when the actual number comes out we see 303 million.
The speculation bull will be a sell/bearish trend because the actual number was lower than expected (forecast).
Similarly, you can determine the uptrends when the actual number is higher than the expected (forecast) one.
The advantage of Trading on Volatility
Both experienced and beginner traders try to take advantage of market volatility.
Are they successful with their trades? Well, not everyone and the reality is that 80% of trades are losing trades.
Volatility is needed to make money from trading but at the same time, is a double edge sword. Used wrong, economic calendar forex can be the end game, especially for beginners.
To trade on such events, you need to understand first and foremost how to control your emotions.
Because the volatility provided at that time is INSTANT price action. So the candlesticks are moving up/down very, very fast. If you are using a 1M (one-minute time chart), you can see the volatility.
Eagles Investors do not recommend these events for those with a week hearth because you might get a stroke during that time. The fact, people have died of heart strokes while following the volatility of the markets.
Major Events that are Occurring at a Specific Time - NFPs
Probably everyone hears about NFPs or the Non-Farm Payrolls happening every month on its first Friday.
Every single time the event takes place, traders take advantage of the volatility created by the release of the economic data regarding the NFP (Non-Farm Payrolls).
Choosing the wrong position will INSTANTLY wipe your trading account.
The economic calendar forex will have weekly events, like Crude Oil Inventory. Other events are GDP, PMI, housing, and many, many other activities.
Frequently you will encounter on fx economic calendar expressions such as MoM, YoY, and QoQ. The announcements contain monthly data (MoM), quarterly (QoQ), and yearly (YoY).
Other significant announcements with massive volatility are Interest Rate Decisions, especially when it is a change to it.
Hopefully, now you have a better understanding of how fundamental analysis impacts market volatility.
I hope that my explanation on the economic calendar forex gave you a better overall view.
Like always, I wish you Happy Trading and Every Success!