The Forex economic calendar generally refers to a chart that traders often use to keep track of current economic news. The Forex economic calendar includes data for past and future economic events for different nations and can tip the trader off to potential price movements of some currency pairs. The economic calendar is compiled by experts in the field who are paid to observe and make predictions of what the prevailing state of the economies of various nations might be in the near and long term. These experts in the field compile the economic data according to a predetermined format. There are many factors that are considered in determining the correct economic calendar format and they are outlined below.
Economic Calendars are generally based on technical analysis. Technical analysis is the process of studying price action over time in the financial markets to attempt to determine the underlying trend of price movement. The process is used to try to determine which way a particular currency pair should go. The major area of technical analysis in the Forex markets is price action and the analysis of breakouts or trends. A number of indicators are used in the process such as the upward sloping triangle, the moving average convergence divergence (MACD), moving average convergence line (MACC), RSI, and other indicators.
Other elements of the economic calendar are denoted by the letters X, S, A, D, and M. The letters stand for the technical and fundamental analysis respectively. The technical analysis indicates what direction the market is going to move in and the fundamental analysis is concerned with the outlooks for government debt around the world. When the market becomes volatile, the gdp indicator moves with it and suggests that the currencies of a nation may fall or rise. The strength of the US dollar index is an important index for this type of analysis.
Many of the economic indicators discussed above can be determined at the data level. However, when trading currencies you will need more than just the current data to make a trading decision. You need to have a reliable indicator to guide you. There are many economic indicators available from the GVA index of the Purchasing Managers Index (PMI) to Producer Price Index (PPI) and other indicators. These all come from different sources and use different methodologies.
To start using the economic calendar you will need to download a copy of the economic calendar from the website of the US Department of Commerce. Choose the appropriate calendar for your country and then choose an indicator that best fits your needs. All indicators are designed to give you the lowdown on the state of the economy in relation to the key economic events of the day. The release of the economic calendar allows for you to track global economies every time of day.
This technology can prove very helpful to the forex trader. You can get the most current information about the upcoming economic releases and use it as part of your trading strategies. You can also learn about any major policy changes that might affect trading and you can take this opportunity to trade accordingly. No longer will you need to rely on press releases or any other outdated information because the latest economic calendar makes it easy for you to stay up-to-date.
Economic calendars also include links to comprehensive online trading tools. The data is collected by experts and then analyzed. The links to trading tools provide analysis, trading signals and news that will allow you to place trades on the Forex market based on the information contained in the calendar. You will receive real-time trading signals and alerts that will notify you when a new economic event occurs. If a currency is rising in value while another currency is falling, you can place trades that will help you make money.
Economic calendars use historical data to create real-time trading strategies that incorporate price movements and the timing of actual releases of economic data. The calendar gives you insight into the markets using fundamental and technical analysis tools. For people who are new to trading or have a limited knowledge of the Forex markets, the calendar provides information that allows you to create trading strategies and place trades on the currency markets using readily available information. The calendar can also be used as part of a campaign to generate long-term investment results.