What is an Economic Calendar?
A forex economic calendar is helpful for traders to understand future news events that might influence their fundamental analysis. Economic calendars list the dates and potential effects of upcoming national and international events that might have an influence on the value and demand of specific markets or assets. Because certain events have been shown to have a major and predictable influence on trade, the nature and timing of each event on an economic calendar may be used as a trading signal to increase profit potential.
This article will teach traders how to use the free Investing.com Economic Calendar to plan, minimize risk, and back up their strategic trading decisions.
How to Use Investing.com Economic Calendar?
When you open the Investing.com Economic Calendar, you will see that they cover the significant news events and economic information from the countries with the most traded currencies.
You want to set your time zone so that the time on the screen matches yours. It’s important to choose the right time zone. It will be hard to estimate the right timing for each news occurrence if a schedule is not in place.
Use the filters so that you don’t have to sort through so many events. You can choose the country you want to concentrate on with the filter, and events can be filtered by category or importance in the market of your choice.
If you are only interested in a certain currency pair or only want to view a specific sort of news event, this is practical. For instance, by choosing the “3 stars” which means “High Volatility Expected”, the Investing.com Economic Calendar will only show the events that have a history of causing market volatility. Focusing on 2 stars and 3 stars news events is recommended. Without overcrowding the calendar with information that will have little impact on the markets.
Investing.com Economic Calendar Filter
After making your selection, you only need to click the “apply” button to view the new settings.
You may click on a news item to view additional details if it piques your interest. To set the alarm and ensure you don’t miss this event, click create an alert. You can also add it to your calendar. The event information is highly useful for new traders as well as experienced traders who want to understand how the event may affect the market. As an example, you can see the information regarding the Fed Interest Rate Decision.
Traders who are just starting out and have never utilized an economic calendar before may be confused by the terms Actual, Forecast, and Previous. The value that is being reported as having actually taken place at this very time is referred to as the “actual.” The value analysts and economists project will occur in the future is called the “forecast.” “Previous” refers to the value of the data at the time when it was most recently made available.
As you can see, the Investing.com Economic Calendar has a number of features to enhance your experience and make it simpler for you to plan your next trade. Additionally, a thorough analysis of each release of economic data may be a very useful educational tool for understanding how each event influences the forex markets.
If you want to learn more about the economic calendar, you can read our post “Learn How to Trade Using an Economic Calendar“.
