If you are a Forex trader that would like to trade Forex currency news, there’s one thing you can’t miss: the Forex Factory economic calendar.
Forex Factory has one of the best economic calendars and here’s why:
These are the 4 main reasons why Forex traders need economic calendars:
Here are the list of 11 Forex Factory calendar features that you should know about that are shown on this image:
Now I will go through each one of the calendar features numbered as shown above.
I always set my time on Forex Factory website to my local time zone because the time you see there is not your local time zone.
This makes it easier (for my head) not to calculate by converting the timezone there to my local time.
As mentioned, the time that you see here is not based on a different time so, if you want to, you can change it to match your own local time.
All you need to do is click that link and you will be taken to a page where you can change the time zone settings so that the time in the Forex Factory website matches your local time on your computer:
On the navigation column, you can see that there are a few things there:
This column list the currency pairs that are going to be impacted by the release of forex news. For example, if Australia is going to make an interest rate announcement, any currency pair that is pegged to the Aussie Dollar will be impacted.
This column simply tells the potential severity of the impact a forex news is going to have on a currency pair. The impacts are color coded into 3 colors:
This column simply lists the all the names of the news that are scheduled to be released.
In the detail column, you have a yellow folder icon. When you click that icon, a page opens up you can read a lot more detail about the particular news, details like:
Forex Factory Calendar News Detail Column Explanation
The actual column shows you the actual figures figures that were released during the news. For example, if the Australian unemployment rate released was 5.8 %, then you will see 5.8% there:
Forex Factory Calendar News Actual Column Explanation
Right after the actual column, you have the forecast column. The forecast column shows you what economists were forecasting BEFORE the news was to be released. Whether they were right or not not is determined by the “actual” figure that comes out in the actual column.
Now, both the forecast column and actual columns are really important because many traders react to the differences in the forecast and actual.
Here’s an example: What if the economists were forecasting that the Reserve bank of Australia was going to decrease the the interest from 2.5% to 2 % this month?
So traders would be expecting based on the forecast that that the actual figure would be 2% but what if the news came out and the interest rate remains the same, at 2.5%?
How do you think the traders will react to that? The most likely outcome would be that there will be lots of buying.
The previous column simply shows you what the previous “actual” figure was for that particular news.
When you go to the graph column and click the graph icon, a page will show up showing you a graph of the actuals vs the forecast figures of the news from the past dates that were released:
Forex Factory calendar legend I should have placed the Forex factory calendar legend in the #1 spot but hey, I got distracted whilst writing this post so that means its going to make the last of the list.
Right, on the legend on Forex Factory calendar simply tells you what each of the objects, symbols and colors that you see on the calendar means:
So in the legend, you have:
There are few others under the legend as you can see which I have mentioned here but are really self explanatory.
They are not really important except for the ones I just mentioned above.