Forex factory

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Forex Factory found on the forexfactory.com domain name is one of the best known resources & a famously reliable forex calendar on the web for trading the news. This is a guide khổng lồ news trading.

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How to lớn use the Forex Factory economic calendarHow to trade with the forexfactory.com economic calendarNews trading using Forex FactoryHow to lớn trade the newsNews tab on Forex FactoryNEWS TRADING STRATEGY using Forex Factory

6How khổng lồ use the Forex Factory economic calendar

Forex traders, especially day traders (discover more about day trading) use Forex Factory khổng lồ keep up khổng lồ date with the news that moves the forex market. Fortunately, Forex Factory collects all the upcoming economic data, aggregate forex market data, và major news events and put them inkhổng lồ an economic forex news calendar. The Forex Factory calendar is especially important in an example like the below when there is a FOMC meeting, major news sự kiện or any other big economic news announcements like non-farm payrolls (NFP).

The forex factory news calendar, a highly active sầu forex diễn đàn, looks as follows:

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There are 10 columns in the forex news calendar. Here we highlight the important ones

Currency: The currency code for the forex pairs most likely lớn be affected

Impact: How likely this data nhà cửa is to lớn cause a big move in the forex market. This is where you will get lightning fast forex news.

Detail: will give you some more information about how this data thành quả works.

Actual: The data when it is released is shown here

Forecast: What the consensus forecast is from economics polled by Reuters or Bloomberg. You can know how market participants are reacting lớn certain data releases here và use past performance to lớn gauge future results and market moves.

Previous: What the result was in the previous release, normally the previous month

Graph: This shows you how the data has moved over time và is useful to see the trend

Apart from these features, the calendar also allows you khổng lồ change the time zone khổng lồ your local time.

How lớn trade with the Forex Factor economic calendar

The next step is trading the forex market for professional forex traders using the economic calendar. To vì chưng this we need khổng lồ understvà how economic data can impact the forex market. Using the news to trade forex is called fundamental analysis.

To learn more, try reading our blog What is fundamental analysis?

However, a deep understanding of what each data point means or an ability to vày economic forecasting is unnecessary for forex trading success by trading the news. This type of trading strategy is known as ‘forex news trading’.

News trading using Forex Factory

News trading involves buy or selling a forex pair the moment news comes out. The economic calendar on Forex Factory is a useful tool for seeing when the news arrives.

Bearing in mind the Forex Factory calendar is free to lớn use so there can sometimes be a lag. A Bloomberg Terminal would almost certainly deliver the news quicker, but it costs thousands of dollars per month, something most retail traders cannot afford. If there is a lag, use an alternative news source as a backup option or if the currency price has already moved, then skip the trade.

How to trade the news

Forex traders compare the actual data result with the forecast as well as the previous reading. All else being equal the economic news should affect the currency as follows….

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If the actual data beats (is better than) the forecast then the related currency will move upIf the actual data misses (is worse than) the forecast then the related currency will move down

Let’s take an example from the previous economic calendar:

Here, Canadomain authority (CAD) CPI has seen a shochồng decline from the previous month as well as missed the forecast. I.e. the 0.5% Actual is lower than the Forecast of 0.7% và the Previous of 0.6%.

Forex Factory ranked this as a high impact news event. The result of this data should be khổng lồ send CAD lower.

To trade the Canadian dollar we trade the major forex pair USD/CAD.

So if the CAD is expected lớn weaken, we buy USD và sell CAD. i.e. we buy USD/CAD.

News tab on Forex Factory

Of course, forex trading is not as simple as the above sầu example & extra precautions should be taken. For example, Forex Factory also has one of the most popular places to lớn find economic news and financial market news on the mạng internet.

Before trading the news, the forex trader might vì chưng well to read market analysis about the Canada CPI data release before it comes out. this can be found on the ‘News’ tab on Forex Factory.

In this example, ING Bank produced an article previewing the economic data release. Other features can also be useful supplementary information such as the Forex Factory sentiment indicator.

News trading strategy using Forex Factory

Certain risk management parameters should also be decided before the example trade in USD/CAD. This can be done with a price chart like those available on the phunutiepthi.vn trading platsize. And of course, this is not exclusive sầu lớn one forex pair. GBP/USD would be affected by GBP announcements và EUR/USD affected by EUR announcements etc - and all will be affected by USD announcements such as US GDP data.

USD/CAD price chart (1-minute timeframe)

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Here the trader can use some basic technical analysis of support và resistance lớn pre-determine entry và exit point for the trade before the news is released.

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Required information for the trade:

Trading Strategy:The News is released at 14:30News article on Forex Factory suggests a miss is possible so prepare buy (long) entryTrade entry will be a market order based on the 1-minute candlestichồng at 14:30Trade Entry và Exit levels:The stop loss could be set underneath the two recent lows on the candle chartThe take profit order can be at the recent highTrading DecisionWait for news lớn be releasedIf the data misses as expected, place the market orderIf the data comes in line or beats, no trade

How to start news trading with forex

Trading the news is a basic trading strategy that is accessible to beginner traders as well as experienced traders but time và practice is needed lớn get it right. A chạy thử trading trương mục provides the perfect venue to practice such a trading strategy before trading live sầu.