Decision making is the key to success in forex trading.
You have to know the market movements precisely.
Then only you can decide the right time to enter the market.
And also the exit, which ensures good returns.
So, the traders should watch the global economic events closely.
What is the use of an economic calendar?
A handy tool for forex traders who do professional trading.
Now you can have a release schedule of every economic indicator.
And you can expect the major movements.
As you follow the schedule, there won’t be any shocks.
The calendar provides you useful information.
About macroeconomic events and government reports.
With the economic calendar, you can follow major economic events.
You can follow the continuous movements of the market.
And will be able to make the right investment decisions.
Market reactions to events are usually very quick.
So, knowing the timing of such events will be very useful.
You can make use of your strategies accordingly.
The calendar contains information on future and past economic events.
It helps you to know the potential volatility of certain currency pairs.
It is easy to infer the changes in the economic indicators,
which eventually affects the value of the currency of a country.
How to use the economic calendar?
Get information from scheduled news events.
Use the data released to know about the economy and financial markets.
Get GDP figures, non-farm payroll numbers, and interest rate decisions, etc
You get data once a week, and sometimes every day.
Moreover, each event is graded according to its importance.
Minor events are marked as low, and they don’t have special markings.
Events that may have a market impact are marked as “ Medium.”
And they are marked by yellow dots.
And the significant events are marked with red dots.
A day trader should be aware of the events marked in red.
These events promise more volatility.
And price movements are certain to happen.
Check your calendar each day and note the time of major news releases.
You can decide your risk ratio depending on the news releases.
Traders opt to close their positions 5 or 10 mins before the high impact news.
They also avoid taking new orders.
Conclusion
Forex Calendar gives useful information about how the economy is moving.
It prepares you to take action.
It offers information from an hourly to a daily basis.
The Forex calendar is a prime tool in forex trading.
And it is the key to success.