Economic calendar tuto

How to use an economic calendar

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Definition of the economic calendar :

An economic calendar, or forex calendar, is an agenda that lists important events, whether economic or political, from the moment they are likely to have an influence on a market: forex, commodities, stocks … C is one of the main tools used to perform fundamental analysis of a market.

Most often, these annones take the form of statistical data from press releases made by central banks, government agencies, etc.

However, this type of calendar should not be confused with the financial calendar, which is only interested in events concerning large companies: publication of results, turnover, dividends, mergers / acquisitions, holidays, general meetings, etc.

Economic calendar presentation

How is an economic calendar presented?

An economic calendar is generally presented in the form of a table which chronologically lists economic events, that is to say according to the date and time of its publication. The following columns are found there, but not necessarily in this order:

  1. Date of publication :

The economic calendar will present you with the announcement table for the current day by default. Of course, you can change the date to consult a past or future event. Note that most announcements are cyclical, that is to say that they are made at regular time intervals: weekly, monthly, quarterly etc.

 

  1. Time of publication :

This is the time for the event to take place. Most often, this schedule will not change for the next publications, or more or less 1 hour, because of the time change.

 

  1. The country / currency concerned :

The table shows which country the ad is from and its currency. Please note that even if the ad does not concern the asset you are trading, as the markets are all interconnected, it may have repercussions on the price of your position.

 

  1. The importance of the expected announcement / volatility :

Economic calendars often rate this importance on a scale of 1 to 3.

    • 1 for events that will not have a major impact on the economy.
    • 2 for events that will have a significant impact.
    • 3 for major events.

It is useful to add that this importance is relative:

    • The same type of announcement (GDP for example) will not have the same effect on the markets if it relates to a country with an economic pay can developed or if it concerns a great economic power.
    • The impact of the announcement will be different depending on the market.

 

  1. The wording of the event :

This is the description of the ad. Most often, you can click on it to have more information like the organization that publishes the data, its definition, etc.

 

  1. The forecast value :

Also called consensus, the forecast value is the average of the values ​​forecast by a panel of economic and financial analysts. It is available several days before the publication of the corresponding current value. It is this value that the market expects to be released through the press release.

This is one of the two most important columns with the current value column.

 

  1. The current value :

This is where the statistics will appear on the date and time indicated. So this is the Nonetheless, there can sometimes be delays. It is this difference between the present value and the consensus that resides in the strategy for trading economic announcements that we will use with the FNA autoclicker.

 

  1. The previous value :

This is the value for the previous period. Please note, this value can be revised at the same time as the current period or later.

 

Configuration of the economic calendar:

  1. Time :

The website hosting the calendar will normally detect your location and adjust the time zone. However, there may be errors, so it’s up to you to check the time and change the time zone if it is not correct.

 

  1. Filters:

You can configure the calendar by filtering the display of advertisements according to several criteria:

  • The country issuing the ad
  • Scope of announces
  • The importance of announcements

Now that you know how to use an economic calendar, I suggest you consult this article: “Trade an economic ad with FNA”

 

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