Among the many resources that offer assistance to traders are: economic calendar investing.com This is the most important service. It’s not news to anyone that this particular tool is the most effective for those who know the theory well. Many people have a question about how to use calendar news correctly.
Go to the economic calendar investing.com
A wide variety of trading data and reports collected from all over the world provide complete information for any investor. Based on this news, they decide when to sell or buy certain assets.
Among the news you can find such information for binary options as events:
- business activity index;
- quarterly sales volume;
- GDP of a certain country;
- international bank reserves;
- changes in petroleum product inventories.
We recommend reading the technical analysis review on investing.com.
These are just a few of the events and news that become available to those who study the economic calendar. The state of the charts, and therefore the success of certain transactions, depends on the layout of economic news. The most common resource with such information is Forex. Economic news can also be found on the website ru.investing.com.
What is an economic calendar for?
To stay up to date with the main economic reports, indicators and news from all countries. Using this data, traders make trades to increase or decrease the asset.
As you know, options trading strategies come in three types:
- Trend - for working with the trend;
- Flat – for working in a calm market;
- Trading on the news.
If a trader decides to use a flat strategy, then he needs to trade only during times of low market activity. Using an economic calendar, for example, from Investing Com, a trader determines the release time of important news and does not make trades using the strategy during periods of strong volatility.
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Any strong news can lead to a new long-term trend, especially if it is opposite to the expectations of most market participants. Therefore, it is also important for a trend trader to be aware of economic events.
There are also popular strategies for trading on news - here the economic calendar is used for its intended purpose. Trading is carried out only a few minutes before and after the news.
Strategy #2
This strategy involves entering not on impulse, but later, when a major player shows the direction.
This way you can avoid “helicopters”, but miss the unidirectional movement.
- Immediately after the publication, as expected, there is increased volatility. However, at this point it is unknown whether the movement will continue or whether this is a false maneuver.
- We watch the price at the moment when it rolled back. At this moment, it is determined where the price will go next.
- If the price approaches point (3), this will mean that the news impulse was false and we will most likely see a move in the opposite direction of the impulse (as indicated by the red line).
- If the price again approaches the minimum formed during the impulse, this indicates that the impulse was true and a transaction can be considered in its direction.
- We open a trade at the updated low and set the TP at 100-300 pips.
Learning to understand the economic calendar Investing
Let's look at the basic data from the Investing com economic calendar:
- Time is the moment of release of the economic indicator of a particular country.
- Currency – the news will primarily affect the specified currency and currency pairs within this volute.
- Importance – determined by the number of bull heads. Three heads are the strongest news.
- Event – the name of a specific indicator, meeting or holiday of the country
- The previous indicator is the data released on the same news last time. It is necessary to compare it with the actual indicator and draw a conclusion.
- Predicted indicator – the value expected by analytical agencies.
- The actual indicator appears during the news release.
When actual data is published, the trader concludes to buy or sell a certain asset. If the released data is better than analysts predicted, then the news will have a positive impact on the economy of that country, and its currency will rise. If the new figure is worse than analysts' expectations, then traders will begin to dump that country's currency and it will weaken.
News indicator for MT4
The calendar on the site is good and necessary when we select trading days and hours for the coming week.
But when the news arrives, the indicator directly on the terminal chart is much more convenient, you can clearly see the market’s reaction to the news.
The news indicator displays on the MT4 chart the date and time of upcoming publications of macroeconomic statistics that affect the Forex market. The country of origin of the report (currency) and the degree of influence (importance) of this publication are also indicated.
The ForexFactory and Investing news calendar is used as a data source.
News on the chart is presented as vertical lines. Next to each line the currency of the published news and its importance are indicated (from 1 to 3 stars).
The indicator works with any trading instruments. You only need to specify the currencies you want to track.
Information panel. When you left-click on a news item, a window with detailed information about the upcoming publication will appear in the corner of the chart.
In order to remove this window, just click on it with the mouse. The window will also disappear on its own when a new candle appears.
Navigation between publications. By clicking on the arrows below the information bar, you can switch between news stories. The selected news is highlighted:
Filtering news by importance and currencies. In the settings, you can specify for which currencies (countries) and what importance the news should be displayed.
News grouping . If several news items have the same publication time, they will be grouped.
To view exactly what news will be published, call up the information panel by clicking on the text signature.
Indicator settings
Filter News by Currencies . This setting allows you to determine for which currencies the news will be displayed.
- Current Symbol – auto-detection of currency using the chart window;
- All Symbols – All available currencies;
- Defined – see next paragraph.
Defined Currencies . Manually specify the currencies you want to see on the chart. Field syntax: "USD,GBP,NZD,TRY" ...
Filter By Volatility . News is usually divided into three types according to the degree of impact on the market: important, medium importance and minor.
- “1+ Stars” – all three types of news will be displayed on the chart;
- “2+ Stars” – news of medium and high importance will be displayed;
- “3 Stars” – only the most significant news.
Hours Ahead/Behind . Past news will be displayed [behind] hours, and upcoming news will be displayed [ahead] hours before it appears. News is only available for the current week, so if you choose to display news from a couple of weeks ago, you will only see news from the current week.
Update Interval . Data update frequency.
Server Time Offset . Selecting a time zone. By default, it is detected automatically. This parameter affects the positioning of news on the chart. Despite the fact that the time zone is determined automatically, you should check whether the news corresponds to reality. If not, set the required time zone manually in the indicator settings.
Show till TimeFrame . Up to which time frame, inclusive, the news will be displayed.
Display Symbol Names . Enables/disables display of the currency name. If you turn it off, only “stars” will remain on the chart, indicating the importance of the news.
Text Position . Placement of text at the top/bottom of the chart window.
Text Size . Specify the font size for the news signature.
Show Tooltips . If enabled, then when you hover your mouse over the news signature, you will see a tooltip. It displays information about the importance, exact time of release and title of the news.
Indicator Position . Select in which corner of the chart the information window with news will be displayed.
Horizontal/vertical Offset . Indents of the information window from the boundaries of the chart window.
Color Sheme. By default, the indicator automatically determines the color scheme depending on the chart background. If necessary, select the desired color scheme from the list.
Alert Method . Select the appropriate notification method: Sound file, Alert (pop-up window). There is also an option to turn off notifications.
Notify Before N Minutes . Notify a certain number of minutes before the upcoming publication of news.
Sound File . Sound file to play. All available sound files can be found in the terminal installation directory in the /sounds folder.
How to add FXSSI.Calendar to MT4 chart?
Follow the instructions to install the indicator:
- Download the file with the FXSSI.Calendar using the button below;
- Copy the file to the MQL4/indicators folder of your terminal;
- Click the right mouse button in the Terminal Navigator window, the indicator will appear in the list;
- Install the indicator by double-clicking on the indicator name in the MT4 Navigator;
- Check the box next to “ Allow DLL import ” and click “OK”;
- The indicator will be displayed on the chart;
- Configure the indicator according to your wishes: press CTRL+I, select the indicator from the list and go to the “Input Parameters” tab.
Example of trading according to the economic calendar
It is not difficult for any trader to determine how the release of new data will affect the chart of currency pairs. For example, at 11:30 am the UK Services Business Activity Index comes out. Analysts predict a slight increase in the indicator, in addition, the news “with three bulls” is considered very important:
The previous indicator was 53.3, the forecast of analytical agencies was 53.5. We are expecting news and at 11-30 new data on the Business Activity Index of 55.0 will be released.
The forecast turned out to be higher than expected, the English currency began to rapidly strengthen and the chart of the GBP\USD currency pair rushed up:
If the news has a positive effect , the indicator is colored green, a neutral effect is black , and a negative effect is red .
Trading on news is always associated with increased risk for the trader. Often, during the release of news on the indicators of the economic calendar, Investing, speculation occurs among large market makers of the market. The price chart can jerk chaotically in different directions, slippage occurs when opening trades (when you want to buy an option at one price, but the broker opens it at another), trading platforms can slow down and freeze.
You can also use Investing.com's handy live binary options chart , signals and economic calendar on one page.
Management of risks
Trading, like any other activity, involves risks, and trading on forex news is no exception. However, there is a significant difference - here the amount of risk can be planned.
- Calculation of lot and margin. For news trading, it is better to trade half of the allowed volume. So if your standard lot is 0.1, then on news it is better to use 0.05
- You should be aware of slippage. On volatile news, the order may be executed much worse than the values you set. So, for example, if you set a Buy-Stop order for EURUSD at a price of 1.11250, then it can be executed at 1.11400
- Using stop-loss orders. On the one hand, their use allows you to plan the volume of losses, on the other hand, a large player can easily knock them out with a deceptive move. With experience, I will understand on what news and how far to put my stop.
Anyone who does not want to lose their deposit will have to learn risk management in Forex.
News that moves the market
Remember the 5 most important news that most strongly influence the change in the price of an asset (mainly on currency pairs with the dollar):
- Change in the number of people employed in the non-agricultural sector;
- Retail sales data;
- Trade balance;
- Consumer price index;
- FOMC meeting.
Also be sure to consider:
- Conferences, meetings of central banks
- Output of central banks' policy rate
- Country GDP indicators
- Inflation data
- Geopolitical news (earthquakes, wars, major accidents)
The preferred currency pairs for trading on news are all major pairs that include the dollar: EUR\USD, GBP\USD, etc.
Interface
The brokerage company Alpari, in collaboration with Fxstreet, has prepared a new version of its tool with expanded capabilities, ensuring the speed of execution of required operations and an increased level of ease of use.
The top right part of the screen, indicated in green, has specialized functions that the user can customize to their liking:
- Interface language (default is “Russian”);
- Current time (by default the service is set to Moscow time GMT +3);
Just below, there is a toolbar for grouping news, which can be sorted by closest dates. In addition, there are various display criteria, a list of which is available after clicking on the “Display filters” button. These filters will help you more accurately regulate the news flow, highlighting news that is important for the trader.
Next are the columns and rows in which the news itself is displayed for the user to review.
News filtering
An indispensable feature of the Alpari news calendar is its numerous built-in filters for quickly sorting an impressive array of data. The following filtering criteria are available:
- By date (today/tomorrow, current/next week, as well as the range you specify);
- By importance (what volatility does this or that news have);
- By country in which the news will be published;
- By type of news;
- By keywords and phrases.
