There are many different tools that are going to become available to you as a Forex trader and one of those tools is something known as an Economic Calendar. On each day of the working week, you are going to find all developed countries of the world will release data based on several different market sectors in those countries. There are many tools that traders use to base trading decisions on. You can’t consistently make successful trades without knowing the current state of the market, using an economic calendar is an easy quick way to stay on top of fast shifting markets.
When using the economic calendar, traders gain a better understanding of market changes, along with the reasons why and a prediction of by how much the market will change as well as a look at past events that have altered the markets and by what percentages. There are four types of impacts used to show the real-time effect on the market; no impact, low impact, medium impact, and high impact. Forex Calendars are used to determine the upcoming market-moving events, bullish or bearish trends and effects of a particular news release.
It is one of the most effective ways to keep tabs on global activities and keep an eye on key economic indicators and upcoming events. In forex trading, it plays a major role and gives the information in the released data which has a huge impact on the currency pairs of that country in respect of some other country. These upcoming and past events, directly and indirectly, impact the currencies of respective national economies. Almost every major move takes place near and after to economic release. This is why every forex trader must be aware of the same.
Forex economic calendar must be complete, relevant and constantly updated to provide direct access to news sources. The interface must be understandable, visual and functional. A software implementation of the calendar must support a logical system of various filters for information with the ability to save the settings in the personal profile of each user. Always seek to understand what news means for the market in general and specifically for your trading instrument, analyze historical data, consider the psychology of the market behavior of the crowd at the time of the news release and then the economic calendar will be a helpful fellow guide for you on your road to profits.
Without an economic calendar, investors would hardly know when to act (and even still, what action to take!) For budding investor or long-time traders who want to be sure to stay in touch with the market, pay close attention to the information offered. If you are going to react quickly and effectively to the ever-changing currency markets, you will have to make absolutely sure you know what is happening, and when. It probably is not a bad idea to check a calendar several times a day and record any changes to the market, which would allow the savvy investor to react accordingly.
