I am wondering what the figures on the calander mean? For example the columns: Actual, Forecast, and Previous.
Some figures quote numbers such as +5 or -2.
While some figures quote percentages such as +10% or -8%.
What do these figures mean? And how do we interpret them to be useful for trading?
hi jeff, i think it depends the news, that i know, you have wait until the actual news release, the schedule of release sometime different with the calendar.
if actual < forecast = bullish/bearish (depend the news)
ex: non payroll (usd) actual < forecast the price will running up then down then up again, broken my balance ha..ha..ha..
Keep it simple. The numbers below those columns (Actual, Forecast and Previous) represent the prices of the quoted currency. So it basically tells you something like: If the price of the currency is higher or lower () than the forecast at the news release it will whether benefit or affect the price (the calendar should also give you the possible effect on it).
There is a lot of information about the effect of fundamental news on currency behavior. In relation to financial markets and particularly Forex market, there is a particular study that shows that after Unemployment Claims’ announcement, the currency pair EUR/USD is affected in a particular pattern. A historical analysis during 3 months shows us that the influence of the Unemployment Claims moved the EUR/USD in an average of 400 pips each time.
The effect of the announcement would influence the market in two ways:
·When the announcement is higher than expected, the currency pair might react with an uptrend.
·When the announcement is lower than expected, it would create a downtrend.
Looking at 5 minutes timeframe, we set a 5 periods RSI at close with 30, 50, and 70 levels, which can give us a confirmation of the signal when the trend changes its direction. However, as most trend indicators this can only show us when the trend cross a level which not always takes place. We must wait for a few minutes, maybe a couple of candles, before taking a position. That way the target must be around an average of 200.
If you want to see the whole strategy check this blog:
Unemployment Claims Strategy MT4 Experts Advisor’s Blog
what a good info. it’s close to some info that I was looking for these days. I realized how important are news especially in this crisis time. By the way, when you say “an announcement is higher than expected” it means there are lots of people trading because of the event? When it is lower than expected does it mean there are not signals on the market as a result of those news? Vanes
News are a good tool for the traders, and I personally consider them a better tool for short term traders, usually the currencies show big fluctuations after important news releases but then the market gets back to “normal”. What I'm doing lately is take advantage of those spikes to profit.
most of the time news calendars provided by broker and forex specialists are well explained so it’s enough if you read besides the charts to know how they suggest news are going to affect the market and on which way. Adrian
I also find news calendar really simple to read. If you happen to misunderstand a calendar, you may think of changing brokers or just to get one built in a logical manner. I have an account on Tradeview and calendar it's great.
Hey my broker is Tradeview too. I checked the calendar some days ago and they are really simple to learn as you said, it has been helpful for me to understand the fundamental analysis.
I haven't seen any calendar difficult to read, I actually admire those whom base their strategies on fundamental. Though I use it along with technical analysis which is also great with Tradeview.
Ok the difficult thing wasn’t understand the calendar in fact is to learn how to make a relation with the technical analysis, I really would like to learn how the professionals or experts make that kind of thing, I mean combining the charts with the fundamentals.. maybe is less complicated as I think it is.