What a Forex Calendar Should Have
Description: This article looks at what forex calendars will have on them and how this affects your use of them.
If you are looking at a forex calendar – or looking for a forex calendar – there are some things you should look for. This will help you understand what exactly is on the calendar and determine what you actually have to take note of. By having a list of these various features, you can use the forex calendar with ease, and get the best information possible from the calendar.
The Dates on the Calendar
The most important feature of a forex calendar is the dates. It might seem logical that a calendar will have dates, but it is the way that the dates are displayed that is important. There are some calendars that do not list future times, and only have the current day listed. These should be steered clear of, as you will never be able to plan your forex trading in advance.
The Time of the Event
The time of the event should be listed on the calendar. You should also be able to choose the time zone that is being used. The reason for this is that you should be able to get the events in your local time. If you do not, you may forget that the time is different, and trade at an incorrect time. You should also have a calendar that holds all the events for the day even after they have happened.
The Currency Affected
The currency that the news is going to affect is very important. There is no point in knowing that a certain event is happening, but not knowing what is going to be affected. You should be able to filter your calendar so you only see the events that affect a certain currency. The reason for this is that no trader actually trades all currencies. You should be focused on a few currency pairs, and you do not need to have information for the countries that are not a part of these pairs.
The Importance of the News
This is very important, and your forex calendar must have it. Most calendars will have a three-part rating system to display the importance of the news item. A lot of news will be low-impact news which may not have a very big effect on the market at all. There are other items of news that have a moderate impact on the market. This moderate news generally happens once a day or less. The last type of news is the very important news. This does not come around very often, but these bits of news will be linked to the main economic indicators of the foreign exchange market.
What the Event Is
Your calendar should tell you what the event actually is. There is no point in knowing that an event is important but not actually being able to tell what it is. If you do not know what it is, then you have no way of knowing how it will fit into your analysis of the market.
The End Result
The news will generally have an end result, and your calendar should note what this might be. Most calendars will have an actual end result, and what it was predicted to be before the event happened.