An economic calendar is undoubtedly one of the most precious tools of Forex traders as it enables you to identify the best indicators for numerous currencies.
The economic calendar could be explained as a type of agenda on which all the upcoming major financial events are listed, as well as certain political events that may exert an influence on currency rates.
Of course, with an economic calendar, we know the dates of major influential events in advance which enables us to forecast the effects in advance and thereby anticipate any accelerations or reversals in a trend.
It is therefore strongly advised to closely monitor the calendar to detect the best upcoming opportunities.
The vast majority of economic calendars that you find online are displayed in the form of a table. The data given is classified by date and chronological order. It generally includes several columns such as:
Some economic calendars even go as far as stating which assets may be impacted by the announcement.
In this case, the economic calendar is highly important. For this you should above all take into account the difference between the value of an event and its preceding value using the consensus. It is the difference between the consensus and the true price that will determine the movement direction of the asset.
Of course, not all the data contained in the economic calendar are going to interest you. It is therefore necessary to be able to identify, in case the calendar you use does not mention it, the assets that will be impacted by the new and the level of this impact.
Of course, depending on the currency pair you're following, other indicators may be important. We know for example that certain currencies are influenced by the changes and shares of raw materials.
In addition, it is essential to never use the indicators from the economic calendar alone, but to add this information to that of the fundamental analysis.
Even though the economic calendar is a very important source of information when investing in the financial markets, to keep you informed of the events that influence the price of assets the most, it is possible to find basic information in other places other than on this calendar.
Also, if you trade shares on the stock market, it is important and even advisable to consult specific data related to the economic publications of the company that issues the securities. Among other things, the data of the results, profits or turnover are essential.
You can also subscribe to information feeds about the shares that you normally follow and that will allow you to daily read fresh news from the markets.
You should also be aware that on the trading platforms, market news are published over time and are accessible for free by user traders.
Even if the economic calendar is an essential tool for the creation of an investment strategy, it is not enough to make sure profits on the market. The economic calendar should in fact be used in parallel with the technical analysis.
Indeed, even if events and basic data have a strong impact on the price of assets, you should remember that the investors also base their strategies on graphic and technical data. It will definitely be a mistake to ignore this data.
A complete and efficient analysis is therefore a combination of technical analysis and fundamental analysis thanks to the economic calendar and other tools such as trading signals or technical indicators.
A comprehensive and effective analysis is therefore a mix of technical analysis and fundamental analysis through the economic calendar and other tools such as trading signals or technical indicators.