ویزترید

What is the economic calendar

The economic calendar is an essential tool for the trader because it allows him to know all the important events of the day that can affect the markets.

Presentation of the economic calendar

Basically, an economic calendar is a table whose rows each represent a separate event.

At the top of the list of events is the date for the day. Then the information about these events is always (or almost) parsed in the same way:

• Announcement Time : Depending on the calendar used, the original time may not necessarily be yours. It will be modified according to your preferences and strategy.
• Notification status : Notifications that have already been made are noted or grayed out according to the calendar. For others, the waiting time will be announced before further announcements.
• Desired currency : EUR, USD, AUD, etc. At a glance, it is possible to determine the currency that is likely to be most affected by this event.
  
• Event name : consumer price index, unemployment rate, GDP, etc. Access to the definition of these events is possible with just one click.
  
• The level of importance of the event : shows whether the news is expected by investors or not: the more it is expected, the greater its impact on the markets.
  
• Results : previous, expected (what analysts think) and current (when the news was released)
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economic calendar

How to use economic calendar information?

When reading an economic calendar, there are a few things to keep in mind.

The first is the obvious one at the time of the event. It is highly recommended to stay in your position during these times, or worse, open a trade just before you expect to take a profit.

You will quickly find that if you rely on analyst advice to make a position, you will be more wrong than right. Often, the market doesn't react at all as expected, going up when it should go up, or going up when it should go down.

The second thing you should pay attention to is the currency involved in the event. Think that this news affects all the pairs in which this currency is located.
Either you wait for the news to pass or you turn to other pairs. But be careful: the news may also affect them, even if it is generally weaker.

Finally, if the event is highly anticipated, this is another reason to stay away. There is a good chance that there will be a "tough" fight between the bears and the bulls at the time of the announcement. This means very high volume and very high volatility: run away!

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