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Posted on Jul 20, 2020 at 09:42 AM
The Forex Factory Calendar is by far the most user-friendly and accurate calendar to keep track of Forex-related news events. By the end of this tutorial, you will know how to use the calendar as well as how to read it in a way that is beneficial to your trading.
While it isn’t necessary to study the news, it is advantageous to know when news is expected. This is especially true for high-impact news that can adversely affect the market. Not only can this type of news affect an open position, it can create gaps that can wreak havoc for pending orders.
Here’s how you can use a Forex news calendar to start making more informed trading decisions. Go to www.forexfactory.com
Once there, you should be presented with a screen similar to the one below.
Next, we will begin to configure the calendar so that you can get the most out of it.
While on the calendar tab, you will want to set your time zone. Simply click the time-stamp in the upper right-hand corner.
On clicking the time stamp, you will be taken to a page where you can set your time zone. It will synchronize the time for each news event with your local time here in Nigeria (or any country you’re in currently).
Note: Setting the correct time zone is extremely important. If not set, it will be difficult to determine the correct time for each news event.
Lastly, you can set the time format to show either am/pm or 24-hour GMT time.
Once you are happy with the settings, click “Save Settings” so that you won’t be required to do this each time. As long as your browser’s cache is not cleared, your settings will remain the same each time you revisit this page.
After saving your settings, you should now see the correct time displayed in the upper right-hand corner of the screen.
Step 3: Setting the News Filter
At this point you should have the Forex Factory calendar in front of you with each news event synchronized with your local time. Next, we are going to set the news filter to determine the type of news and currencies to display.
This is convenient if you only want to display certain types of news events or are only interested in specific currency pairs.
To set the filter, click the “Filter” icon in the upper right-hand corner while on the calendar tab.
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.
Pro Tip: The colored boxes under “Expected Impact” is interpreted as;
red = high-impact news, orange = medium-impact news, yellow = low-impact news, grey = no impact
I like to focus on the “medium and high-impact” news events. This gives me a complete picture of what to expect over the coming days without cluttering the calendar with news that will have little impact on the markets.
Once you have everything set the way you want, click “Apply Filter” to begin showing only the events and currencies you selected. You can change this any time by repeating this step.
Step 4: Selecting the Desired Time Frame
You should now have your time zone set and your filter configured the way you want. Now it’s time to select the desired time frame. This is the span of time that will be shown on the calendar.
The navigation pane you see below will allow you to set any time frame you desire.
From this window, you can choose a single day, a week or even the entire month.
Pro Tip: Choosing to see the entire week is often the best approach when trading the higher time frames. This allows you to prepare for the next few days rather than just the next 24 hours.
Step 5: Mining for Gold
From the screen in Step-4, you can see additional details such as the source, frequency and history of the event to name a few. To close this window, simply click the “X” shown in the image below.
Before we move on, I want to reiterate how important it is to use these additional details sparingly, if at all. The real advantage to using a calendar as a technical trader lies in the scheduled time and expected impact of the news. Anything more than that, using a news calendar can become more of a distraction than an asset.
That concludes the process of setting up the Forex Factory news calendar. The next half of this tutorial will discuss how to use what you’ve just learned to your advantage when trading Forex using Technical Analysis. Want to be alerted when the next series drops tomorrow? Leave a comment below