If you’re just trading the currency market, you need to know how to read the Forex calendar. This calendar is one of the fundamental tools every trader in the financial markets needs to make trading decisions. Virtually every forex broker hosts one of these Forex calendars on its site for use by its clients and other currency traders. Here’s how to read the economic calendar.
The Forex Calendar is similar to a table with multiple columns. The main information found on this calendar is as follows:
The time when the data was officially released. This data allows you to time trading decisions based on when they are posted. It should also be noted that economic calendars are usually updated in real time, so you can see new data appear almost immediately as soon as it becomes available.
The actual data. This column provides published official data.
Data for the previous period. This allows you to make comparisons to see if metrics have improved or worsened.
consensus. These are forecast values that give you a rough idea of the market consensus for this indicator.
volatility. These are the ratings given by the people who compiled the calendar on the impact of the indicator on the market. Typically, economic data is categorized into high, medium and low volatility based on how they think the data will affect the price of a currency.
Here are some of the most important indicators that can affect the exchange rate if you trade the USD against the currency pair.
Forex traders wish to be successful in this high-risk business should utilize all the facilities within their means in order to successfully reach their goals or quotas at the end of each trading day. In the constant search for success, Forex traders, especially those just starting out in the business, should be mindful of the unparalleled importance of the Forex calendar.
One with the right information on this Forex tool, you can use it to your advantage. The calendar is not the expected ordinary event. Not only that. It keeps you safe considering what you’ll read. If you are already an expert at reading this type of calendar, you can also use it to generate a lot of income.
Forex calendars have proven to be really useful in providing useful and useful information and data on the size of operations in various periods. In some cases, depending on the metrics of the situation, you have to receive updates every hour. On top of that, many traders point out that this economic calendar.
It is absolutely impossible to make the most important decisions in the Forex market without a Forex calendar within reach. This is why expert and seasoned traders will always tell newbies to forex to take this economic instrument with great importance.
Complex decisions that can move the world are not finalized without consulting the Forex calendar. It would be helpful for any trader to consult his calendar every day. But then again, you cannot rely solely on the economic calendar to succeed in the Forex market. There are many other factors you should consider as well as the skills you should develop. Using this time-tested tool, you’ll make smart economic decisions that you won’t regret.