Use A Forex Calendar For Forex News Trading

Posted by admin 05/02/2014 Comments are off 455 views

Forex News Calendars

This article looks at making use of a forex calendar to help with your forex news trading strategy.

Forex trading involves making assumptions based on a data range.  It is often possible to predict the future by using historical information, but it requires further analysis than that.  You should think that it is possible for any event to occur when you least expect it.  By trading on forex news as well as technical analysis, you can often gain an edge in the forex market.

The use of a forex calendar to aid you in trading forex news could make life easier.  The calendar is normally available for download at most forex websites or from your forex broker.  This tool is available to aid you in becoming and remaining aware of the major news events and announcements related to the forex market.

Events

There are regular news announcements and data releases regarding important economic indicators in the different countries.  These include indicators such as non-farm payroll, interest rates and consumer price index.

Forex News Trading

Regardless of your method of trading, you should be aware of what is happening in the marketplace.  You should also be aware of any future events that may have an impact on the manner in which you trade.  If you decide to trade by ignoring economic events because you cannot give up the time to do so, you would be ignoring a massive part of a very successful trading strategy.  If you are using technical analysis for your trading, you also need to know what the implications of fundamentals are on your trades.

You may well currently have a good trading strategy and you are making profits, but if your strategy does not include factors that could stir up the market, your funds will be at risk.  This type of information can be accessed by using a forex calendar and being aware of the events that may cause that swing in prices.

A forex calendar provides you with the times and dates of major news events.  Being aware of the announcements does not mean you should start trading simply because an event is due to take place.  It is advisable to refrain from trading for at least two to three hours before the economic data release related to your currency pairs.  This will aid you in avoiding the major currency movements when the announcement is finally released.

You may notice a large swing in currencies shortly before an announcement is made.  The trend normally reverses fairly soon after the time of the announcement.  This is when the market has settled down.  You want to avoid the fake signals or you may get drawn into the panic trading that is occurring.  Most traders, who make use of this strategy, check the signals about half an hour after the settling down period.

By making use of a forex calendar, you can highlight the events you wish to receive an alert for.  These will be related to the major announcements that could affect your currency pairs.  Many websites where the forex calendar is available offer assistance in not only the use of the calendar, but also regarding the most opportune time to enter your trades.  They also do an analysis of exactly how that announcement may affect your trades.

 

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