Forex Factory is a popular website among traders who are interested in the forex market. The website provides a variety of tools and resources that traders can use to improve their trading performance. One of the most popular features of Forex Factory is the economic calendar. This calendar provides traders with information about upcoming economic events that could impact the forex market. In this article, we will explain how to read the calendar on Forex Factory.
The calendar on Forex Factory is divided into several sections. The first section is the date and time column. This column displays the date and time of the economic event. The time is displayed in the timezone of the user. The second section is the currency column. This column displays the currency pair that is affected by the economic event. For example, if the economic event is related to the US dollar, the currency pair could be USD/JPY or EUR/USD.
The third section is the impact column. This column displays the level of impact that the economic event could have on the forex market. The impact is divided into three categories: low, medium, and high. Low impact events are events that are not likely to have a significant impact on the forex market. Medium impact events are events that could have a moderate impact on the forex market. High impact events are events that could have a significant impact on the forex market.
The fourth section is the event column. This column displays the name of the economic event. For example, the event could be a central bank interest rate decision or a release of economic data such as the non-farm payroll report.
The fifth section is the actual column. This column displays the actual value of the economic event. For example, if the economic event is the release of the non-farm payroll report, the actual value would be the number of jobs added to the US economy in the previous month.
The sixth section is the forecast column. This column displays the expected value of the economic event. For example, if the economic event is the release of the non-farm payroll report, the forecast value would be the number of jobs that analysts expect to be added to the US economy in the previous month.
The seventh section is the previous column. This column displays the previous value of the economic event. For example, if the economic event is the release of the non-farm payroll report, the previous value would be the number of jobs that were added to the US economy in the previous month.
To read the calendar on Forex Factory, traders should pay attention to the impact column. High impact events are the most important events and are likely to have a significant impact on the forex market. Traders should also pay attention to the actual value of the economic event. If the actual value is better than the forecast value, the currency pair is likely to appreciate. If the actual value is worse than the forecast value, the currency pair is likely to depreciate.
In addition to the economic calendar, Forex Factory provides traders with other tools and resources that can be used to improve their trading performance. Traders can use the website to monitor news events, track economic indicators, and analyze currency pairs. The website also provides a forum where traders can discuss trading strategies and share their experiences with other traders.
In conclusion, the calendar on Forex Factory is a valuable tool for traders who are interested in the forex market. Traders should pay attention to the impact column and the actual value of the economic event to make informed trading decisions. By using the website’s other tools and resources, traders can improve their trading performance and become more successful in the forex market.
