Forex calendar is by far one of the most commonly used trading tools in the market today. Its usefulness is evident since following the current events and economic releases can help you predict the future movements in the market. You would be surprised to see how much influence a single news event can have and it is better to be informed, know what to expect and most importantly − when.
If you are one of those Forex traders who mostly use technical analysis in their trading strategy and you think that the fundamental analysis is a complete waste of time, you should definitely reconsider including a Forex calendar into your trading routine. Economic calendars are the perfect way to know when news that might create market movement is expected and therefore you will be prepared for possible periods of high market volatility.
Using the Forex calendar
There are many Forex calendars programs out there to choose from and it all comes down to your individual choice. The chances are you broker already has a calendar set up on their page if they use a web based trading platform, or if it is a part of downloadable trading software.
Before you start using a Forex calendar, most of them require a proper set up. You will probably be asked to enter your location and in order to sync the dates and times to the time zone you are located in. This means that the times of news releases will be presented to you accordingly.
Selecting the news
Afterwards you will have an option to pick and choose the types of news you want displayed on your screen. You should use this filter only if you are interested in trading a specific currency pair or a trading session, or you want to be notified about a new development from a particular news source. Depending on your interests, you can also find various economic indicators in a Forex calendar such as Consumer Price Index, Employment Situation Report, Gross Domestic Product, and many more.
It is useful to set a time frame that will be shown on the calendar’s main screen. This will help you navigate through all the various news and events that are displayed. Your screen will be neater and there will be no unnecessary information that is of no use to you or your trading strategy.
Knowing when a certain event or a news release will happen can make you think more about the timing of your trades and the general directions you plan on making. If you are aware of an upcoming news release, you will be more careful with your funds and you will be able to avoid the volatility before it actually happens.
With that said, using only Forex calendar as the main tool of your trading strategy is simply foolish. Yes, you will be ahead of other traders who are not using the calendar but you should implement other tools and analysis if you want to make the most of the situation.