HOW TO USE FOREX FACTORY CALENDAR

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The Forex Factory Calendar is by far the most user-friendly và accurate calendar lớn keep traông chồng of Forex-related news events. By the kết thúc of this tutorial, you will know how to use the calendar as well as how to read it in a way that is beneficial khổng lồ your trading.

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But before we get into the details, I want to dispel a common misconception.

Many technical traders make the mistake of thinking that, because they take a technical approach to lớn the market, they don’t have to lớn pay attention lớn news events.


Free PDF Guide:Want khổng lồ learn how khổng lồ use the Forex Factory news calendar in 5 simple steps? Clichồng here to tải về the exclusive sầu PDF guide.


While it isn’t necessary to lớn study the news, it is advantageous to know when news is expected. This is especially true for heavy-hitting news that can adversely affect the market. Not only can this type of news affect an open position, it can cause slippage & gaps that can wreakhavoc for pending orders.

Here’s how you can use a Forex news calendar lớn start making more informed trading decisions.


Step 1: Getting Started With the Forex Factory Calendar


The very first thing you want to vày is navigate lớn theForex Factory calendar.

Once there, you should be presented with a screen similar to lớn the one below.


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Don’t be intimidated by all of the activityon this page. It will all make sense by the over of the tutorial.

Next we will begin configuring the calendarso that you can get the most out of it.


Step 2: Configuring Your Time Zone


Now that you’re on the calendar tab, you will want to set your time zone. To vị this, simply click the time in the upper right hvà corner.


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After clicking the time stamp, you will be taken lớn a page where you can mix your time zone. This will synchronize the time for each news sự kiện with your local time.

Note: Setting the correct time zone is extremely important. If not phối, itwill be difficult to determinethe correct time for each news sự kiện.

At this point youalso have the option khổng lồ turn Daylight Savings Time (DST) on or off. Lastly you can toggle the time format khổng lồ show either am/pm or 24 hour “military time”.


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Once you are happy with the settings, clichồng “Save sầu Settings” so that you won’t be required khổng lồ vì this each time. As long as your browser’s cabít is not cleared, your settings will remain the same each time you revisit this page.

After saving your settings, youshould now see the correct time displayed in the upper right hand corner of the screen. If not, repeat step 2 to lớn make sure your settings were saved properly.


Step 3: Setting the Event 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 aregoing lớn mix the event filter to determine the type of news & currenciesto display.

This is convenient if you only want to lớn display certaintypesof news events or are only interested in specificcurrency pairs.

To phối the filter, cliông xã the “Filter” icon in the upper right hvà corner while on the calendar tab.


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After clicking “Filter”, you will get a screen lượt thích the one below. This screen gives you the ability khổng lồ filter events by expected impact, event type as well as currency.


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Pro Tip: Hover your mouse over the colored boxes under “Expected Impact” lớn get an explanation of each one. In short, red equals high-impact, orange is medium-impact and yellow represents low-impact news.

I personally like to lớn focus on the medium & high-impact news events. This gives me a complete picture of what khổng lồ expect over the coming days without cluttering the calendar with news that will have little impact on the markets.

Once you have sầu everything phối the way you want, click “Apply Filter” to lớn begin showing only the events and currencies you selected. You can change this any time by repeating this step.


Step 4: Selecting the DesiredTime Frame


You should now have sầu your time zone set và your filter configured the way you want. Now it’s time lớn select the desired time frame.This is the span of time that will be shown on the calendar.

The navigation paneyou seebelow will allow you to phối any time frame you desire.


From this window, you can choose a single day, aweek or even the entire month. Also note that you can quickly selectpredetermined time frames in the bottomhalf of the navigation pane.

Pro Tip:Choosing to lớn see the entire week is often the best approach when trading the higher time frames. This allows you to preparefor the next few days rather than just the next 24 hours.


Step 5: Digging Deeper


In addition to seeing the “surface content” such as the event name, expected impact and scheduled time, you can also expand each sự kiện to see additional information.

Be sure to use this feature with caution. It can be far too easy khổng lồ get caught up in the nuances of each sự kiện. As price action traders we need to bemore concerned aboutwhat’s happening on the chart và less concerned about the fundamental significance of news.

The image below illustrates how you can expvà the details of a given news sự kiện.


Once the ibé above is clicked, you will immediately see additional details of the sự kiện.


From the screen above sầu, you can see additional detailssuch as the source, frequency and history of the event to name a few. To cthua thảm this window, simply clichồng the “X” shown in the image above.

Before we move on, I want khổng lồ reiterate how important it is lớn use these additional detailssparingly, if at all. The real advantage to lớn using a calendar as a technical trader lies in the scheduled time & expected impact of the news. Anything more than that & using a news calendar can become more of a distraction than an asmix.

That concludes the process of setting up the Forex Factory news calendar. Now let’s get into the second half of this tutorial & discuss how lớn use what you’ve sầu just learnedto your advantage when trading Forex price action.


Choosing the Important Headlines


Knowing how khổng lồ phối up the Forex Factory calendar is one thing, knowing how khổng lồ use it properlyis quite another. The first thing to understvà is that you only want to focus on themarket-moving events.

This means setting the filter khổng lồ include only the medium và high-impact news events. By doing this,you don’t have sầu to sift through the low-impact news khổng lồ find the events that are likely to cause increased volatility.


Pro Tip:Below is a menu of some of the major news events you shouldkeep an eye on as you trade the Forex market.

Federal mở cửa Market Committee (FOMC)Nonfarm Payrolls (NFP)Unemployment ratesFinal Gross Domestic Product (GDP)Monetary policy announcementsAny rate decision announcement fromcentral banks

Before moving on, let’s recap what you have learnedthus far.

By now you should have the time zone, filter and time frame phối for your calendar. You should know how to view additional details of a news event as well as which events are most likely lớn cause an increase in volatility.

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Next we will get intohow lớn strategically position your trades around major news events so as to minimize your risk.


Trading Around the News


The reason we want khổng lồ use the Forex Factory calendar is khổng lồ know when market-moving news is expected & thereby avoid or prepare for periods of high volatility.

As such, I want lớn run through a few basic rules when it comes to trading around the news. All of the scenariosbelow assume that the news sự kiện in question would hypothetically impact your trade. For example, trading USDJPY with Nonfarm Payrolls (NFPs) on tap.

No open positions ahead of a news event

This is obviously the safest place to lớn be with major news around the corner. You have nothing at risk and you get lớn objectively analyze the price action that forms as a result of the news.

But what if the news isn’t just around the corner? How much time is needed between putting on a new position và a scheduled news sự kiện that could adversely affect that position?

This is a hard question khổng lồ answeras it depends on a few factors.

The trader –Trading style & risk tolerancecome to lớn mind. Every trader is different and therefore has different requirements when it comes lớn how risk averse they are.The time frame – On average, a trade on the 4 hour chart will require less time between the entry & 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 lớn profit before the news sự kiện occurs.Distance totake profit – Aside from the time frame, the distance from the entry to the take profit also plays a role. A trade with a 50 pip profit targetwill require less time than a trade with a 300 pip target, hypothetically speaking of course.

As a general rule, I lượt thích to see at leasta 24 hour window in which there is no scheduled (major) news before putting on a trade. By “major” I’m referring to one of the events listed above. This of course can change depending on the last two factors listed above sầu.

mở cửa position – small profit

This scenario involves an open position that is in profit, but stands a good chance of turning negative if the news event in question adversely affects the position.

We’ve sầu all been there – that point of indecision before a major news sự kiện is about to hit.

Should you cthua thảm the trade and book a small profit khổng lồ be safe? But then what if the market moves in favor of your position? If you cthua thảm it now you risk missing out on potential profits.

In my experience, most traders fear a missed opportunity more than they fear losing capital.

This couldn’t be more wrong.

Your number one job as a trader is capital preservation. Making money always comes second. The path I choose 95% of the time in this situation is lớn take my small profit và get out. I can always get back in later if the market presents a favorable opportunity.

Just rethành viên – when in doubt, get out.

Open position – largeprofit

The last scenariowe’re going khổng lồ discuss is the second safest place khổng lồ be behind having no open position, of course.

When a high impact news event is around the corner and you have sầu a position that is well into lớn profit, you have more options. It’s much easier to ride out a majornews event if you know your position is 200 pips in the money.

One thing that can influence your decision here is how far away your trade is from its profit target. Let’s assume this position was originally aiming for a 300 pip profit target& is now just 40 pips from the target. In this case I would be more likely khổng lồ close the trade before the news event lớn book profits. To risk giving baông chồng 260 pips for an additional 40 pips isn’t the greatest of propositions.

Your other options are khổng lồ take a partial profit and leave the remaining position on or keep the entire position open throughout the event. I’m not a huge tín đồ of taking partial profits so I usuallyopt lớn go all or nothing. But one thing is certain, you have sầu a lot more options with a position that has run inlớn considerable profit.


Now it’s time khổng lồ bring it all together. By now you should know how to configure your Forex Factory calendar as well as how to manage news events. Let’s finish up this tutorial by discussing how price action plays a role in all of this.

I have written before about how to lớn use the news khổng lồ gauge market sentiment. However this time I want khổng lồ talk about actually reading the news through the price action strategies that size on your chart.

What is a pin bar, really? How about an inside bar? You probably knowwhat they look like, but have sầu you ever thought about why they form?

These two strategieshave a comtháng thread – they are both the bysản phẩm of news. Whether it be something that was just announced or a more gradual flow of news that causes market sentiment khổng lồ either fluctuate or remain constant.

In fact, all Forex trading strategies are a bysản phẩm of news in one way or another.

However, the pin bar & inside bar really embody toàn thân the essence of how news can influence a market.

Here’s why…

Pro Tip:Stick to the higher time frames (4 hour và daily) in order to get a better feel for the impact of a major news sự kiện. This will help to eliminate the “whipsaw” effect that is comtháng on the lower time frames.

Pin Sạc Bar


Some of the best pin bars size on the baông chồng of a major news event. In fact one of my favorite setups is the NFP pin bar. This is because NFPs are released at 8:30 am EST andthe 4 hour candle on my Thủ đô New York cthua kém chart closes at 9am EST, giving the market thirty minutes khổng lồ react.

The timing of a news event like this can often cause the price for US Dollar pairs to rise or fall quickly, thus forming a 4 hour pin bar. Of course it isn’t always the case, but when an NFP. pin bar forms at a key cấp độ, it’s often worth taking.

Inside Bar


The inside bar can be thought of as the opposite khổng lồ the pin bar. While the pin bar represents a volatile push in either direction, the inside bar represents consolidation after a large move sầu.

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 thiết lập is often referred to as a type of breakout strategy.

Pro Tip:While the pin bar can be traded on the daily or 4 hour time frame, the inside bar is best traded only on the daily time frame.

Before we kết thúc this section, I would lượt thích to point out that the news which causes these types of moves isn’t always immediately apparent. The markets can move because ofan unscheduled sự kiện or perhaps an event that has already passed & the market is just now realizing the impact. Regardless of how or when the news occurs, the two strategies above give sầu you a quick và easy way to read the news via your charts.


We have covered a lot of material in this tutorial. Everything from how to configure the Forex Factory calendar to lớn how khổng lồ use it when trading price action. As such I would like lớn summarize some of the more important points lớn keep in mind when using the news calendar.

First & foremost, the news calendar should never be used as a tool khổng lồ help you enter the market. In other words, attempting to lớn trade a news sự kiện for the volatility it causes is a surefire way to lớn blow up a trading trương mục.

The calendar can, however, be a great way to lớn keep traông chồng of upcoming events. Knowing when these events are scheduledcan help you make decisions aboutthe timing of your entries. It’s also helpful if you have an open position as it gives you the opportunity to lớn book profits before a potential increase in volatility.

As a price action trader, you have sầu a distinct advantage over other market participants using something other than price action. You have sầu the ability to lớn read the news through your charts using strategies such as the pin bar and inside bar. Just rethành viên khổng lồ stiông chồng to the daily & 4 hour time frames with the exception of the inside bar, which should only be traded on the daily time frame.


What is a Forex calendar?

The Forex news calendar is a vital tool for any serious trader. It shows the scheduled news events for the week & usually ranks them from low to lớn high impact.


What is the best Forex news calendar?

I prefer the Forex Factory news calendar. It’s incredibly easy to use & is one of the more accurate calendars out there. Plus, you can enter your timezone so events are displayed in your local time.


Should you trade Forex news?

In my opinion, the answer is a resounding no! Trading the news is gambling. I’ve found it far more useful khổng lồ study the price action that follows a news event than trying lớn guess.


Are you ready khổng lồ start using the Forex Factory news calendar?

If so, you definitely want to tải về thefreePDF guide that I just created.

It breaks down how to lớn use the calendar in 5 simple steps & explains which news events produce the most volatility.

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Cliông chồng the link below & enter your email lớn get instant access khổng lồ the PDF guide.