Economic calendar, how can you use it, what is fundamental analysis and stuff like that.
I’m going to explain the most important topics which you need to know before you start to use the economic calendar, here you can see Live the investing.com economic calendar.
Start Trading with the best Instant executionBroker
And if you go to the to the main website, you can go to news in their economic calendar there are many other websites offering this future, it’s not something special, the famous one is Forex-Factory.com if you go to their main page you have the economic calendar where the strong news are, those which are going to affect the markets.
The red ones are the must important ones which are the markets movers, the orange ones are of 50% importance and the white ones are the the one which probably won’t be felt on on the charts or create much volatility.
First, the strongest one are the ones with two or three bulls head, those ones are our most likely to affect the market, but sometimes they don’t.
Let’s take by changing it to your local time so we have the time right, you need to do this with each economic calendar, no matter the website you use to check it, or you can just keep it as it is and do the maths. However it is easier if you adjust the calendar clock to your own local time.
Now, if we are going to check what currencies might be affected by the news, we have to check the importance of the news or the event.
If you click on the event you will be redirected to another page where you can read about the event, you can see the past results they have a long track record. You can go ahead and click on a event up on the economic calendar and try it out.
Pay attention to the Actual value, the Forecast and the Previous value, not necessary if you have more Actual than the Forecast then the news is negative, you new to do some research to be sure when, base on the forecast, the news might be consider negative, to do this in a faster way, just pay attention to the record of the previous time when the new came out, so you can get an idea of when certain tendency occurred base on the forecast given.
Say you are waiting for a news for the dollar which is classified with three bull heads, High Volatility. Then how should you trade?
If the percentage or value is marked as green, then you should open a Buy position and if it is marked as red then you should open a Sale position.
But remember, in Forex there there are too much manipulation from institutions and banks. Therefore, even if it is a three bullheads news, which is green it might keep sideways or to be bearish (I write out of my own experience).
Because of this, I recommend not to rely heavily on fundamental, likewise news, you always got to trade together with the trend and do not get in with news that they might eat your trade. Built and be faithful to your strategy.
News to take care of:
Oil Inventories, CPI, FOMC, President of ECB, President of FED, Presidential Elections of the big Powers/countries. there are others, but for me these one are the best to take advantage of the market.