High, Medium and Low Impact news are represented by objects looking like a folder top that has been eaten by a caterpillar. 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. 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. This makes it easier not to calculate by converting the timezone there to my local time. Thank you so much for sharing your valuable work with me, it is so important for me have this code.
Hence, any national currency of a country that has a large crude oil reserve will be impacted by the crude oil price. While understanding monetary policy is difficult, even for veteran economists, the way to interpret this news is rather easy. If you see Forex a forecast that says the Federal Reserve will likely increase the overnight rate, it will likely have a bullish effect on the U.S. So, for example, if the Japanese Central Bank keeps its rate unchanged, it will be a piece of bullish news for the USD/JPY.
Beginner Forex book
Plus, you can enter your timezone so events are displayed in your local time. So whereas the pin bar forms as news is released, the inside bar often forms the day after a news release. This is why the inside bar setup is often referred to as a type of breakout strategy. The time frame – On average, a trade on the 4 hour chart will require less time between the entry and the pending news than a trade on the daily time frame. This is because, hypothetically speaking, a trade on the 4 hour chart has a greater chance of running to profit before the news event occurs. That concludes the process of setting up the https://dotbig-com.medium.com/about calendar.
- Investors will keep a close eye on risk perception in the absence of high-impact macroeconomic data releases.
- Let’s assume this position was originally aiming for a 300 pip profit target and is now just 40 pips from the target.
- He’s been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg.
- Everyone knows these days that the ECB has a problem with inflation in the Eurozone.
- The European Commission will release the preliminary December Consumer Confidence report later in the day.
- We have a dedicated team of economists and journalists who update all the data 24h a day, 5 days a week.
Figure 1 lists the approximate times of the most important economic releases for each of the following countries. These are also the times that players in the forex market pay extra attention to the markets, especially when trading based on news releases. Because part of the fundamental analysis of Forex market is to trade expectations. In this case, based on the inflation data, https://www.dukascopy.com/swiss/english/forex/trading/ expectations grew that the central bank will cut rates at the next meeting. Cutting rates are bearish for a currency and sellers step in. 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.
High-Frequency Trading
Once you have everything set the way you want, click “Apply Filter” to begin showing only the events and currencies you selected. After clicking “Filter”, you will get a screen like the one below. This screen gives you the ability to filter events by expected impact, event type as well as currency. Forex Retail sales reports are usually issued on a monthly basis and market analysts consider it as a leading macroeconomic indicator. When consumers feel safe and secure about their jobs, they tend to spend more on durable and non-durable goods, which boosts transactions and creates value.
But one thing is certain, you have a lot more options with a position that has run into considerable profit. Should you close the trade and book a small profit to be safe? But then what if the market moves in favor of your position? If you close it now you risk missing dotbig out on potential profits. The reason we want to use the Forex Factory calendar is to know when market-moving news is expected and thereby avoid or prepare for periods of high volatility. From this window, you can choose a single day, a week or even the entire month.
