I'm new to forex and starting to do news trading. I am totally new to understanding the forexfactory economic calender. I know red box is high impact and it effects alot in the market but for what news do I look for? All? I also have no clue on how the results work. eg. Some shows green but numbers show below previous results. Also like it shows a negative and also green. Is this a gain or loss.
I`m not a News Trader but you need to look at the pair that is in question on a 1-minute chart at the time of the event & see if the actual figures are Above or Below the Predicted Figures. You will need to Paper Trade 1st. so you know what values move the market, either the Actual Figures are Above or Below the Predicted Figures & by How Much.
Example: if the actual figures are above the predicted figures by 20% the market will move up, what the Exact Percentage is you will have to Determin Yourself by Paper Trading if you can do any Historical Research about this it would help learn allott better.
As far as research goes you can try looking at Fiancial News & Price History for Past Events & Future Events.
Try asking your Broker if they can Guide You on this as far as the Importance of the Event or Try other Forums - Forex Peace Army comes to mind.
That`s about all i can tell you as i never actually got into it very much.
I hope this helps.
You should look for the news of the countries involved in the pair you are trading, for example US and Japan if you trade USDJPY.
The significance and impact of the news in the forex trading is usually marked by a grey/yellow/red color, with grey marking the low impact news, yellow that medium impact and red the high impact news.
Thanks this sounds helpful.
My confusiong is that example USD past result was 241k black and recent result was 250k red. Is this a gain or loss? Or how about -5.2 past and recent -7.4. See example screenshot.
For some news the higher is the better, as for example in NFP tomorrow.
But for some others the lower is the better, as for today's unemployment claims (the fewer, the better).
I`m glad you found it helpful, maybe this will help to...Each pair has a base country/currency so become famillar with the Major News Announcements = Economic Data published by the Government`s respective agency, in the usa. the Labor Dept. & Federal Reserve, as with all countries each has specific New`s Announcements that are the most importment ones affecting the currency usually 1-2 a month but not all are of any value...A good place to start would be a forum that covers or has a Economic Calander, this is where you will find the New`s Announcements made by each country & specific date/time of the announcement...You can ask other traders any questions you may have about what`s important & what to ignore & where to get Analysts Estimates of the Projected Figures, then compare them in relation to the price movement during the 1st. minute after the Announcement & them follow it a while to see the longer term affects..Remember that the Higher or Lower the published figures are compaired to the Estimates by the Analysts the more the price movement will be...Look for about a 10%-20% difference between the 2 to start with & adjust according to your own observations...
Happy Trading & Many Pips.