How Economic Calendars Can Be Useful

Trading these days requires much more from a trader than just the general concept of making instant decisions. It demands that a trader should be a good analyst; he should have a keen eye and diverse interests. To be a good analyst one must focus on the economic situation and remain updated with the latest market trends. A trader’s knowledge and insight is the ultimate key to triumph in this business.

Economic Calendar of the forex market is a quick and reliable source to collect news about the global market conditions. Economic calendar can be very helpful if you are looking for a good raise in your profits.

Features of the Economic Calendar

The economic calendar has a lot of helpful features; it keeps a history of all the information and also ranks the economic events according to their time of occurrence, their importance and their weight on the market. Not only this, it also contains the forecasts of analysts and professionals. Usually before the opening of the trading week, an online calendar is also published. The data and events are constantly adjusted according to the current situation. The best way to utilize this calendar is at the time of publication. New and fresh information can be of real use in forex trading.

The calendar has another very beautiful feature that it warns you of the upcoming news in advance. So in case some news is going to be released, you can close your open positions or get as much profit as possible in that time.

How to use the Economic Calendar

This is how you can utilize the economic calendar for your trading benefit. Every event announced in the calendar holds three meanings; the event itself, its forecast, and the previous meaning. Basically, it tells you the deviation of the event based on the analytical predictions and consensus and also uses the facts from the previous such events for traders to anticipate movements in the foreign exchange market.

The market will have a mild reaction or it will be absent altogether if the forecast is justified by the predicted values. However if the forecast does not coincide with the calculated values, the market reaction will be strong. The strength of market reaction will depend on the amount of difference between the actual and the forecasted data. If the currency output turns out to be better than the expected value, it calls for a buy order. Similarly, if the output is worse than expected, you should consider sell option. It would be a rare event that actual and forecasted outputs match, but in such a case neutral trading is recommended.

Non-farm payroll numbers, gross domestic product (GDP), consumer price index (CPI) and interest rates are some of the major significant events which can be anticipated with the help of economic calendar.

End word

An economic calendar is offered by almost all financial resources. These calendars may differ in their design, settings and features but it is vital that the calendars are constantly updated and they have clear, complete and relevant facts. Also, it would be nice if they have good visual and functional features for better user experience.

The whole purpose of economic calendar is to have easy access to economic information but it would be useless if you do not know how to analyze this information. You should have a complete understanding of the psychology of forex market if you wish to succeed in this business.

DISCLOSURE: Information on IntelliTraders should not be seen as a recommendation to trade binary options or forex. IntelliTraders is not licensed nor authorized to provide advice on investing and related matters. Information on the website is not, nor should it be seen as investment advice. Clients without sufficient knowledge should seek individual advice from an authorized source. Binary options and forex trading entails significant risks and there is a chance that clients lose all of their invested money. Past performance is not a guarantee of future returns.

This website is independent of binary brokers featured on it. Before trading with any of the brokers, clients should make sure they understand the risks and check if the broker is licensed and regulated. We recommend choosing a regulated broker. In accordance with FTC guidelines, IntelliTraders has financial relationships with some of the products and services mention on this website, and IntelliTraders may be compensated if consumers choose to click these links in our content and ultimately sign up for them.

IntelliTraders does not accept any liability for loss or damage as a result of reliance on the information contained within this website; this includes education material, price quotes and charts, and analysis. Please be aware of the risks associated with trading the financial markets; never invest more money than you can risk losing. The risks involved in trading binary options are high and may not be suitable for all investors. The IntelliTraders Network is educational material and not trading advice. Trade at your own risk.

© 2022 IntelliTraders, inc. All rights reserved. Privacy Policy Terms & Conditions