Forex factory has become very popular among forex traders. The traders use the forex factory to stay updated with market news, market moves that affect the day-to-day of forex. Luckily, the platform gathers economic data, forex news, and trending fx events and sets them on an economic calendar. The example below shows how essential the forex factory calendar is for traders. As explained, there is an FOMC meeting or any other significant financial news about to be announced like the non-farm payrolls (NFP).
The forex calendar has ten columns. Here are some of the top highlights
Currency is the code for the forex currency pairs that can be affected.
Impact: this shows how likely the particular data item will cause a significant move in the fx market.
Detail: this gives information about how the data item functions
Actual: accurate data released is shown here.
Forecast: this shows the estimates from data polled by either Reuters or Bloomberg.
Previous: shows results from the last month
Graph: shows how data has moved over a duration of time and how useful it is to see the patterns
Forex Trading Using The Forex Factory Calendar To Trade
Before trading using the economic calendar, it is essential to understand how economic data impacts the forex market. The use of forex news to trade is referred to as fundamental analysis.
News Trading In Forex Factory
News trading means purchasing or selling forex pairs as soon as the news is announced. Here, the economic calendar comes in handy as an essential tool for getting access to the information as soon as it is reported.
Keep in mind that it is free to use the fx factory calendar. Therefore, you might experience some lag a few times. The use of a Bloomberg terminal is expensive for many retailers. Even though they might deliver the news faster, it is essential to have an alternative news source to act as a backup. If you notice the currency price has changed dramatically, then skip the trade.
