Sinais Forex: What is the Economic Calendar how to use it

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Economic Calendar

The economic calendar is one of the most important tools for any forex trader. 
Learning how to use the economic calendar is absolutely necessary for anyone who wants to trade on the forex market or any financial markets.

Basically the economic calendar is a list of economic events that are likely to affect the price action in the largest financial markets in the world. Data drives price action, so it is essential to pay attention to important economic events.
Once the forex investor learns to read the economic calendar, it will be much easier to stay away from the big price swings in the foreign exchange market.
The forex news calendar is simple to understand and completely free to access. It is important both for those who trade alone and for those who are learning forex using the fx signal (forex signals).

What is the Economic Calendar

There are countless events that move global markets.
Some of them are unexpected, but most are scheduled well in advance.
The economic calendar of the foreign exchange market gives traders a list of all the isolated economic events that can move markets, classified according to the likelihood of having an impact, large or small.
The economic calendar is created with the event, the launch time (usually given in UTC), as well as a note of the importance of the information.
While reading an economic calendar is not a guarantee of commercial success, ignoring it is not a smart move for investors who want to make money in foreign exchange markets.
Events on an economic calendar are generally divided into three categories, based on the likelihood of moving foreign exchange markets.
Most economic calendars have green, yellow and red events, with red being the most likely to create large market movements, that is, greater volatility.

It is important to know which events will move the markets in the coming days and weeks, and an economic calendar provides traders with all this information in an easy to understand format, making it easier to identify important moments in the markets.

Why is the Economic Calendar so important?

There is no denying that data moves financial markets.

Some of the events on the economic news calendar can cause markets to collapse, which is why professional traders have strategies with the volatility that often accompanies major events, such as the US non-farm payroll report (NON FARM PAYROLL)

Failing to understand events in the economic news calendar is not an option for a trader, because events in the forex news calendar can have an extraordinary effect on global markets. If there is a GDP report for a large economy or inflation data, traders need to know what is going on to adapt their strategy accordingly.

Even if a single trader does not believe that a specific event will have a major effect on the markets, other traders can push the price of a currency pair during major economic events.
The best way to stay informed is through an economic calendar.

Benefits of using an Economic Calendar?

Benefits of using a Forex economic calendar
Once a trader learns how to trade forex using the economic calendar, he is much more likely to be ready for major economic events. Many professional traders do not take large positions around sensitive economic news, as the risk of being eliminated from a position is high.

It is easy to see the type of market action that a US Fed rate decision drives, which is why it is important to look at the economic exchange rate calendar for important events.
Using an economic news calendar to time trades is a good idea and can prevent your positions from being swept away by violent market fluctuations.

We recommend using Investing's economic calendar

We hope this Blog was useful.
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