How to Trade Using Forex Economic Calendar in 2022

It’s obvious that economic events in the world can directly or indirectly impact your Forex trading positions. However, most beginners and even experienced traders omit the real-time data from the economic calendar. That’s ok if you are a pro in technical analysis but can lead to losses in most other cases. Below is a starter guide for economic calendar Forex users that will help you know more about the real-time market trends.

How to Understand Forex Economic Calendar

Once you get a relevant economic calendar from your broker or a trusted website, you have to use the following tips to read the data properly:

  • Select a timeframe of one day, week, or month to get the scope of events you need.
  • Analyze the most important facts, including interest rates of central banks, inflation rates, GDP figures, employment reports, trade balance data, etc. 
  • Use filters to see events by regions, priority levels, sources, etc. 

Economic calendars are usually focused on macroeconomic events that influence the main trends in the Forex market. By analyzing this data, you can make informed predictions about the price moves in specific Forex pairs and adjust your current strategy to the new situation. For instance, the events located in Australia will most probably impact the AUD/USD pair. It’s also necessary to monitor USA events all the time because USD is the reserve currency for the entire world and makes up around 50% of all major currency pairs. 

Don’t forget that fundamental releases always impact the global market situation, so not knowing about them can be a huge disadvantage as you won’t be able to predict significant price swings. 

Advice for Beginners

If you are not familiar with how economic events affect certain currency pairs and why you should start by analyzing 1-3 pairs passively to see what principles work in real-time monitoring, It’s also necessary to take look at historical data to see how past releases impacted particular currency pairs. Study price fluctuations fundamentally to highlight the main dependencies. Of course, future releases won’t produce exactly the same impact as similar events in the past, but you will be able to make more accurate predictions anyway. 

What Experienced Traders Do

The most prudent approach to trading with an economic calendar is to wait a bit after an event occurs to start acting right away when the impact on the price becomes clear. 

A riskier approach is to place trades right before or after the events based on your prediction. It’s a risky method, but experienced traders can apply it to maximize their output. 

Finally, some traders make decisions based only on fundamental releases without analyzing technical data. This is the riskiest approach as technical analysis efficiency is undoubtful. Combine economic calendar data with technical analysis for the best long-term results.

Good Luck!

Don’t forget that a lucky trader is one who knows more than others and uses their knowledge proactively. Employ Forex economic calendar along with technical analysis in your strategy and maximize your yields!

Visit here : zonepage.net

Click here : zeepost.org

Visit this site : f95zoneusa.org